Home Insurance: What's Covered and What's Not

Types of Home Insurance:

There are two main types of home insurance: buildings and contents coverage. Buildings insurance covers the physical structure of your home, including the roof, walls, windows, and permanent fixtures like kitchens and bathrooms.

Contents insurance protects your belongings inside the house, like your television and jewelry.

You can choose either type of coverage independently, but homeowners typically have both. If you're a tenant, buildings insurance is your landlord's responsibility.

What's Typically Covered:

Home insurance safeguards your house against major events like fires, storms, and floods. Any damage caused by these significant occurrences is covered, but not general wear and tear.

For example, imagine a strong storm hits your area. If your roof sustains damage from high winds, but it already needed repairs, the insurance wouldn't cover the existing damage highlighted by the winds.

However, if the high winds cause a tree to fall on your roof, the repairs would be covered.

You can also extend coverage to your building for accidental damage, like putting your foot through the ceiling or drilling into a water pipe. This is usually an optional add-on to your policy, meaning you might pay a higher premium for this coverage.

Similarly, your contents insurance would typically pay out if your television were damaged by a water leak, but not if it simply stopped working (considered a breakdown). You can also cover items like a television if you accidentally knock it over, but this falls under accidental damage, typically requiring an additional premium on your policy.

Single Item Limits:

While contents insurance covers most things in your home, like phones or paintings, most policies have a Single Item Limit for valuable items. This limit is the maximum amount the insurer will pay for a single item. If the value exceeds a set amount, you need to register the item individually. Each insurer has a different list of valuables, but they usually include jewelry and watches.

Your belongings can also be covered when you're away from home. For instance, your mobile phone and jewelry can be covered if damaged or stolen while you're out. This coverage typically requires separate selection and an additional premium.

These items often have Single Item Limits as well, so you might need to list them if they exceed a certain value, typically between £1,500 and £2,000. If you have anything more valuable, inform your insurer to add it to the policy (although this may affect your premium).

Additional Coverage:

There are other optional add-ons you might consider:

• Home Emergency Cover: This covers various emergencies, including broken locks, heating system breakdowns, emergency repairs for burst pipes and roofs, and clearing blocked drains. If you can't stay in your home while the problem is fixed, alternative accommodation might also be covered.
• Legal Cover: Legal issues can arise unexpectedly, and this cover extends beyond just house-related matters. It might cover personal injury, medical negligence, or property disputes. Check your policy booklet, but a range of services are generally included.
• Bicycle Cover: While your bike is at home, contents insurance likely covers it. But you probably didn't buy a bike just to keep it indoors. Some insurers, like Aviva, offer additional coverage for bikes used by you and your family anywhere globally. You can choose your desired coverage level between £300 and £3,500.

What's Usually Not Covered:

All insurance policies have exclusions, and home insurance is no exception. Besides general wear and tear and optional extras like accidental damage cover, some common exclusions in home insurance policies include:

• Frost damage
• Storm damage to gates, fences, and hedges
• Deliberate damage caused by a household member
• Damage caused by birds, insects, and other pests
• Pet damage
• Boilers: Another expensive part of your home that might break but isn't covered by standard home insurance. If you're a homeowner, consider boiler cover.

Remember, many insurance policies become invalid if your property is left unoccupied for more than 30 days. The risk of damage and/or theft increases significantly when homes are empty for extended periods.

Do I Need Home Insurance?

Could you afford to rebuild your home if a fire caused major damage? What about replacing all your belongings if you were robbed? Probably not. That's why many people choose to get both buildings and contents coverage.

How Can I Lower My Insurance Premium?

If you're looking to lower your home insurance premium, there are a few things you can do:

• Choose a higher excess: Selecting a higher excess will reduce your premium. An excess is the amount you have to pay towards a claim before your insurance kicks in. However, choose an excess amount you can comfortably afford if you need to make a claim.
• Consider multi-policy discounts: If you have other insurances with the same company, like car insurance, you might qualify for a multi-policy discount.
• Install smoke alarms and fire alarms: Having smoke detectors and fire alarms can decrease the risk of fire damage, potentially leading to a lower premium.
• Make your home more storm-resistant: Fortifying features like your roof and installing hurricane shutters can reduce the risk of storm damage, which may result in a lower premium.

What to Consider When Buying Home Insurance:

When shopping for home insurance, it's important to compare prices from different insurers and ensure you have the appropriate coverage level for your needs. Carefully read the policy document to understand what's covered and excluded.

Additional Tips:

• Maintain a record of your belongings: This will simplify filing a claim if any items are lost or damaged.
• Update your policy regularly: If you make any changes to your home, like adding a room or bathroom, update your policy to reflect these modifications.
• Review your policy periodically: Regularly review your policy to ensure it still meets your needs.

Conclusion:

Home insurance is a valuable investment that can help protect your home and possessions from unforeseen events. Be sure to research thoroughly and compare quotes from different insurers before purchasing a policy.