Home insurance is essential, but having the correct cover is even more crucial. The consequences of inadequate or poor-quality cover can be severe. Here are the top 5 things you need to know about home insurance:
1. The cheapest policy is NOT always the best.
Home insurance is not the area to cut corners. Comparison sites don’t assess cover quality. Aim for policies with a 5* Defaqto rating; they provide comprehensive cover with generous limits. The higher the Defaqto rating, the better the quality.
2. The buildings cover amount is NOT the property value!
You need buildings cover equal to the property’s rebuild value, not its market value. This includes demolition, site clearing, labour, materials, surveyor fees, and architect fees.
Being underinsured means your payout could be limited. For example, if your rebuild value is £350,000 but you only have £245,000 in coverage, you’re only insured for 70% of the rebuild value, resulting in a payout of £171,500. Find the rebuild value using a surveyor or the BCIS calculator: BCIS Website.
3. Accidental Damage is a key add on.
Accidental damage, although an extra cost, is worth considering. It covers unintentional incidents like drilling into a pipe or staining your carpet or sofa. This cover gives you peace of mind against those clumsy moments.
4. You need more contents cover than you think.
Imagine flipping your house upside down; everything that falls out, including carpets, blinds, and curtains, is contents. Evaluate each room’s contents and take an inventory to ensure you’re not underinsured, as this can limit your payout.
5. Your treasured possessions may not be covered.
Policies have limits for single high-value items unless named separately. For example, if the policy has a £1,500 limit and your item is worth £2,000, list it as a specified item. Ensure all high-value items are named on the policy.
Some providers have strict limits, so be honest when setting up the cover. You can choose to insure valuable items inside the home or both inside and outside.
If your home insurance is due for renewal within the next 30 days, book in a call with one of our advisers TODAY! Otherwise, leave us a website message with your renewal date, and we will contact you.
Blog written 04/02/2025
The information contained within this blog was correct at the time of publication (04/02/2025), and is subject to change.
