< Back to blog

Home insurance – what it is, why you need it, and finding the right policy for you Posted On 10 December 2018

Everyone wants a secure home, and the purpose of home insurance is exactly that – to make life more secure and financially stable

 

Like all types of insurance, home insurance is just another way of attempting to make your life more secure. And – let’s face it – everyone wants to feel secure in their home. Considering your home is one of your most valuable possessions, which houses many – if not all – of your possessions, as well as cherished memories and comforts, it’s entirely logical that finding a suitable home insurance policy is an extremely sensible thing to do.

Home insurance is a type of insurance product which protects your property and the belongings in it. The policy can include various personal insurance protections, such as losses occurring to one’s home, its contents, and loss of other personal possessions of the homeowner. It can also involve liability insurance for accidents that may happen within the policy territory, and it may pay for costs if someone sues the homeowner.

In certain cases, it may actually be required for a homeowner to take out a home-owners insurance policy. The mortgage lender, before funding your mortgage or refinancing, may ask you to provide proof that your home is insured. This is because the lender wants to protect their financial investment should, for example, the property becomes damaged or destroyed by a fire or other threats.

If you don’t have home insurance, however, the Consumer Financial Protection Bureau states that your lender is permitted to purchase insurance and charge you for the cost. It’s best to consider the possibility though, that the policy the lender obtains may be more expensive than what you can purchase on your own – and may even offer limited coverage too. So, it’s usually best to look around for an insurance policy yourself.

 

Finding the right policy

Finding the right policy for you is vital – one which suits your needs and your budget. One of the first things you should do is make sure you pick the right kind of home insurance policy for you. There are three main types of home insurance: buildings insurance, contents insurance, and combined buildings and contents insurance.

Buildings insurance covers the cost of repairing damage to a property’s structure. This could include walls, windows and the roof, as well as permanent fixtures and fittings such as baths, toilets and fitted kitchens. Contents insurance covers the cost of replacing your belongings in your home if they are damaged, destroyed or stolen. Generally speaking, your ‘contents’ are defined as the items that you would take with you if you moved home.

There are a range of websites to use which help in narrowing down your criteria, what kind of insurance policy you want, and how to work within your budget effectively. There are a host of price comparison websites to use too, which will specifically compare various policies in detail, to help you to find the right deal for your needs.

< Back to blog

Connect with us

Recent Posts

Super Bowl LIII – 2019

Super Bowl LIII, the 53rd Super Bowl and the 49th modern-era National Football League championship game, will decide the league champion for the 2018 NFL season. The game is scheduled to be played on February 3, 2019, at Mercedes-Benz Stadium in Atlanta, Georgia 32 teams compete in the NFL Play-Offs across two divisions: The National …

Read more...

Sir Andy Murray: One of Britain’s Greatest Sportsman

After emotionally announcing his plans to retire from tennis last week, three-time Grand Slam winner, Andy Murray, has been flooded with praise from across the world of sport The 31-year-old Briton played only 12 matches last year and returned to the Brisbane International last week, where he won his opening match but lost in the …

Read more...

Romantic getaways made for two

If one of your new year’s resolutions is to explore new places with your partner, look at our guide to suit all budgets. Including romantic European cities, cosy British countryside and the dazzling Northern Lights Iceland On nearly everyone’s bucket list is a trip to Iceland to see the spectacular Northern Lights! The best time …

Read more...

Find your perfect match

We are all looking for a little romance in our lives and with Valentine’s Day fast approaching, why not take our quick, fun, quiz to find your perfect match!   Pick a meal for your perfect date A. Three-course fine dining experience with wine B. Beer and a Chinese C. Fish and chips eaten on …

Read more...

How to care for, and get the best out of your garden

Even during winter, your garden still needs your care and attention if it is to be at its best in spring. So, here’s how to keep the love you have for your garden as warm as can be Weeding, pruning and raking Though inevitable, weeds are a gardener’s arch nemeses. Getting them under control can …

Read more...