When you buy home insurance, you're the policyholder. But what if you live with your partner? Is there such a thing as a joint policy?
There is. And they come with a few extra perks.
Let's discuss what a joint home insurance policy is, what to consider, and how to search for the best deal.
Can I buy a joint home insurance policy?
Yes. A joint home insurance policy isn't complicated, it is what it says on the tin!
When you buy an insurance policy, typically you'll be the sole policyholder.
But you have the option to manage the policy with someone else.
It's not compulsory, though. Even if you have a joint mortgage or if the deeds of your property are in both you and your partner's names.
Why choose a joint home insurance policy?
A joint home insurance policy has some key benefits. But these vary and can depend on your personal circumstances.
At this point it's important to mention that naming your partner on your home insurance policy isn't the same as being joint policyholders.
That's because simply naming someone in a home insurance policy doesn't give that person full control of the policy and full access to cover.
So, what sort of benefits could you gain from joint home insurance?
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If you're joint policyholders, either of you can start a claim. If you're just named on the policy, you'd need the policyholder to begin any claim on their behalf.
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Less paperwork and a streamlined claims process if you need to claim but something happens to one of the policyholders
What are the downsides to having a joint home policy?
Firstly, it could have cost implications. If one of the policyholders is a greater risk in the eyes of insurers than the other, it could increase the cost for both.
This is true if one or both policyholder(s) has:
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A history of insurance claim
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A poor credit history
Also, if you change to joint policyholders mid-policy, you might have to pay an admin fee.
When should I consider joint home insurance?
If you and a partner own your property and pay a mortgage together, you'll be used to both names on the letterhead!
Getting joint home insurance together gives you both equal control of the policy, so you can claim without the hassle.
Also, if you do pay your mortgage in a joint agreement, your insurer might ask you to buy buildings insurance under both of your names.
As far as contents insurance is concerned, it might not be as straightforward.
Why?
Well, contents insurance tends to cover all permanent members of the household, even if the policy is only under 1 name. The policyholder will be responsible for any potential claim, including claims made by other members of the home.
Well, contents insurance tends to cover all permanent members of the household, even if the policy is only under 1 name. The policyholder will be responsible for any potential claim, including claims made by other members of the home.
That's why it's important to accurately estimate the total value of your contents.
But it also means that you could risk an increased premium and admin fees if you do opt for a joint contents insurance policy.
What to check before choosing a joint policy
Let's recap what you should check if you're considering joint home insurance:
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Ownership: If you already have a mortgage together and trust each other to keep up payments, it could be a straightforward decision.
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Insurer rules: As joint policyholders, you'll both be legally responsible for managing your home insurance. If you're making a claim or an amendment, any decisions you make could affect the other policyholder.
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Costs and fees: Remember, a policyholder posing a greater risk to insurers could bump up your home insurance price. If you need to adjust the policy to joint insurance, you'll likely have to pay admin fees.
Weighing all of these factors up before deciding on a joint home insurance policy is important. After all, it could affect what you pay and your responsibilities!
Compare home insurance
Admittedly, searching around for home insurance isn't going to be the most exciting part of your day. But you should look around for the best deal.
Insurance regulations introduced in 2022 state that home insurance companies can't charge existing customers more than new customers for a like-for-like policy. So, renewing should be the best option, right
Maybe. Maybe not. Your might be missing out on a saving if you just let your home insurance policy renew automatically.
That's why it's always best to compare home insurance quotes before renewing. Not only could you wind up saving money, but your new policy could have a few extra features and benefits.
It definitely pays to shop around - plus if you shop around and buy with Confused.com, you'll get a reward!
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