There is no point in shelling out for insurance if it doesn’t adequately cover both your home and all your possessions.
Unfortunately, many people make simple oversights when applying for an insurance policy - like failing to read the exclusions or underestimating the value of their possessions – which they only discover when it comes time to claim.
It may not be exciting, but it’s essential you take the time to work out what your insurance needs are and whether the policy you choose matches those needs exactly.
Your policy checklist
Perhaps the most obvious mistake people make with buildings and contents insurance is underestimating the level of cover they need.
Assume a worst case scenario, whereby your whole property will need to be rebuilt and every possession replaced, and base your estimate on this.
It’s always better to err on the side of caution and pay a couple of quid more than you need for cover than risk finding yourself thousands of pounds short.
Not just your house that needs cover
For those with a garden, you need to check whether any additional structures - such as sheds - are covered under your buildings insurance.
Also give consideration to the type of threats your want to protect these structures against, such as fire, earthquakes, or storms.
As for contents insurance, it’s becoming increasingly important that you protect yourself against garden theft – a recent survey by Halifax found that the average theft claim has increased in value by over a quarter over the past five years to £387, while the number of thefts sky rocket by 52% during the summer months.
Do you have a photographic memory?
Most of us own a lot more stuff than we realise, so it’s important to take photographs of all your possessions and keep them somewhere other than the house.
Not only will this help you remember everything you own should you lose your possessions, but it will also speed up the claiming process by providing evidence for the assessor.
Finally, consider whether you have any high-value assets in your home. These may not be automatically covered under your policy and you may need to take out additional cover.
Time to get a quote
Once you have given careful consideration to your assets and what type of cover you’ll need, it’s time to shop around for insurance quotes.
Do it the other way round and you’ll be tempted to cut corners in order to obtain the cheapest quote, rather than choosing the one that will actually provide value for money should the unthinkable happen.
You may want to save time by using a search tool like Insurancewide, which scours the market for competitive quotes instead of you having to visit each site individually.
Got the insurance, now what?
Once you have obtained the cheapest possible cover for your insurance needs, it’s important you carry out a few periodic checks on your property to ensure you don’t invalidate you policy.
As Elaine Parkes, technical services head at Legal & General's insurance business, points out: “Customers are required to take reasonable steps to safeguard their property and contents against loss or damage as part of the terms of their household insurance cover.”
These checks needn’t be too frequent or time consuming, and will benefit you just as much as the insurer.
- Check the burglar alarm annually
- Make sure the shed is locked & secure
- Check trees/shrubs after storm to ensure they are unlikely to fall on the house
- Lock all windows and doors before leaving
- Notify insurer if you are going away for a long holiday – over 60 days
- Check smoke alarms and check batteries monthly
- Notify your insurer of significant DIY plans
