There are two types of insurance that should be considered in relation to your home:
The council insures your building against damage. This insurance covers the building structure and items such as your kitchen and bathroom. It does not cover any of your personal belongings or furnishings such curtains or carpets.
The council does not insure the contents of your home.
Contents insurance protects all the items within your home not covered by the buildings insurance policy. Items generally covered by contents insurance includes; carpets or floor coverings, furniture, curtains, clothing, kitchen appliances and other valuables. The purchase of contents insurance is optional but advisable.
Arranging contents insurance can give you peace of mind if something should happen to your belongings. If there is a fire, flood, storm damage or burglary, the council will repair any damage to the property, but the council won’t cover the costs of replacing any of your furniture or belongings.
There are two types of standard contents insurance
Indemnity policy - This is the cheaper contents insurance option, but for a reason - it takes into account the amount of wear and tear. For example, if your carpet was 10 years old when it was ruined, any pay-out will reflect its age.
New for old policy - This is generally more costly, but in comparison to the example above, if your 10 year old carpet was ruined you would be paid the full amount for a new replacement carpet.
How much contents insurance do you need?
Don’t underestimate the value of your contents - it all adds up. For each room in your home, make a list of the items you want to insure and jot down the cost of each – and don’t forget bikes, lawnmowers etc. that are kept outside or in outbuildings.
Once you’ve made your list, add up the total cost and choose the right cover according to the value.
Are there any hidden costs?
Most insurance policies can be paid annually or monthly. It is worth comparing the overall cost of paying monthly against a one-off annual payment as you may pay more by splitting your payments in this way.
Many policies will also require you to make an excess payment every time you make a successful claim. This can vary from policy to policy. If a policy states that you have to pay an excess of £100 this means you will pay the first £100 towards any claim they agree to pay. For example; if you make a claim for goods to the value of £500 you would have to pay the first £100 and the insurer would pay the remaining £400 towards the value of the new goods.
Where can I get insurance?
An online comparison site is the best way to start getting quotes. This is a quick and easy way to search for a policy that will give you a decent benchmark for prices.
Comparison sites pass your details to insurers' and brokers' websites, finding the cheapest deals.
You can try using the following comparison sites to find the best deal for you: