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There are many home insurance products on the market, and it is
important to think about your needs rather than just going for the
cheapest possible deal.
Most mortgage providers will require you to have
buildings insurance to cover the cost of rebuilding your home in case
of disaster. Mortgage companies lend you money in the knowledge that if
for any reason you fail to make your payments they can take your house
as an asset, so for this reason they will insist that the asset is
insured.
Your buildings insurance should ideally cover the
cost of alternative accommodation if for some reason your home is made
uninhabitable. You should also be very careful to double check that the
policy fully covers the cost of rebuilding rather than just giving you
the market value of your property.
In addition to the physical structure, your buildings
insurance policy should cover the permanent fixtures of your home, such
as your bathroom fittings, kitchen cabinets and wall coverings.
Basically, anything that you would not or could not normally take with
you if you moved home will be covered by your buildings insurance
policy.
Things in your house that you would expect to take
with you if you moved, like furniture, electrical goods and clothing,
have to be insured separately with a contents insurance policy.
Mortgage companies do not require you to have contents insurance, but
mo
st policies are fairly cheap and could mean the difference between a
big financial problem and a slight inconvenience if your things are
damaged or stolen.
If you have any particularly expensive items in your
home they may not be covered by a standard contents insurance policy.
On the other hand, some policies will even cover you in the event that
someone is injured in your home due to some failure on your part to
maintain the property.
As with buildings insurance, the cheapest policies
are not always the best value. Cheaper policies will only give you the
market value of the goods that you need to replace, not what it will
actually cost you to buy new replacements. So unless you would be happy
to replace a damaged couch with a second hand one, you may wish to pay
a little extra.
Contents and Buildings insurance will both normally
cover you for damage or destruction of your property by flood, storms,
fire, theft and vandalism, but higher levels of cover are available if
you feel that it is necessary, for example accidental damage. If you
have children in the home this can be very useful and well worth the
extra premium.
There are a number of price comparison websites that
will help you to find the best deal for you, and with so many different
products available you are sure to find a policy with the appropriate
level of cover to meet your needs.
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