Choosing the right insurance plan for your home may seem straightforward at first, but it is far from it. Once you start your research it becomes apparent that there are several factors to consider in order to pick the most comprehensive plan that won’t break the bank. To help you along, here are the top tips on what to consider when picking a suitable home insurance plan.
Know What Your Chosen Plan Covers
Insurance cover is widely varied, so first, it is important to be aware of what is actually covered in your home insurance plan. Most people don’t go over the finer details of what is included in their home insurance. While you don’t need to dig up every legal document you ever signed, it is a good idea to reach out to your insurance provider and check on your plan. You might be surprised to find out what is covered and what isn’t.
The same principle applies if this is the first time choosing your home insurance; make sure to understand all aspects of your insurance plan. For instance, some plans will also cover your personal belongings when you are travelling abroad where others would apply an additional charge for the same service.
Buildings Insurance, Contents Insurance, or Both?
The two main types of home insurance are buildings insurance and contents insurance. Buildings insurance will cover the cost of any repairs that may be needed or to rebuild your home. But it does only cover the brick and mortar structure of your house. This will typically include the walls, floors, and the roof, as well as windows, doors, and permanent fixtures and fittings, such as baths and fitted kitchens.
Contents insurance, on the other hand, includes movable property located within your house and will cover any costs incurred in the replacement or repair of lost or damaged items. Some plans will also offer a combination of buildings and contents insurance. These are worth considering, especially in cases where your belongings are particularly valuable.
Reputable Insurance Firms Only
However appealing they might be, beware of insurance plans that sound too good to be true or offer premiums that are significantly lower than the usual market price. Before settling on a provider, make sure to do a thorough background check, especially if they are not one of the leading brand names. Reputable insurance companies are regulated by the Financial Conduct Authority (FCA). FCA is the regulator for financial services, companies, and financial markets in the UK.
The FCA spans across 56,000 businesses across several sectors, including heavyweights like the top rated UK forex brokers and deposits and savings protection. In the case of forex brokers, providers need to meet strict business standards such as keeping their assets separate from clients’ assets. Similar standards apply to insurance providers regulated by the FCA. The regulation of insurance companies is entrusted to that same independent body overseeing the challenging sector of forex trading, which has a turnover in the billions, and deposits and savings which has a similar worth. This underlines how important it is for consumers to stick with reliable insurance companies in order to avoid scamming.
Request More Cover if Needed
Insurance plans are as diverse as people’s needs – which means that while it might be unusual to insure certain items, it is certainly possible that you can find an insurance plan to cover them. Do not be overly worried about asking your agent about extending your home insurance, as the answer may surprise you.
You can get emergency damage cover if emergency responders need to break into your house, for instance. Another example is home emergency cover in case it is no longer safe for you to reside in your home due to some sort of natural disaster. Beyond that, it is also possible to insure items such as garden fixtures or the contents of your freezer, which can come in handy when you are regularly away for long periods of time.
While the task of choosing the most suitable home insurance plan might feel slightly daunting initially, it is essential in order to ensure you are getting your money’s worth. Get the right estimates for both the value of your home and the cost of potential repairs, and don’t forget to shop until you find the right fit.