Moving into a new home is exciting, whether it’s your first step on the property ladder or the start of a new rental lease. You’ll be thinking about how to make your new place a home and all the memories you’ll make within its walls. However, also on your mind should be keeping your new home covered with the right home insurance.
There are many different types of home insurance policies to choose from, so it’s important to understand what each policy covers so you can pick the option that best suits your needs.
What is home insurance?
Home insurance covers your house and/or belongings in the unfortunate event of damage or theft. It can cover the cost of replacing your items after a theft and the rebuilding of your home in the event of fire, flood, or storm and is generally split up into two categories:
- Buildings insurance covers the building structure with its permanent fixtures and fittings like bathrooms and kitchens, as well as any outbuildings such as garages or sheds.
- Contents insurance covers your possessions inside the property like carpets and furniture. There are many options for different levels of cover, including personal items, cover for high-value items and cover for your belongings in outbuildings or valuables you take with you outside of your home.
You can also choose to have combined insurance which covers both the buildings and its contents. Within this policy, you’ll have the ability to add extra features like emergency cover, freezer contents cover or like-for-like replacement.
How much contents insurance do I need?
Contents insurance is not compulsory, but it is essential if you want to cover your belongings you keep inside your home. The cost of contents insurance can depend on an array of different aspects including location, the value of your belongings and the level of cover you want. The level of cover you choose is completely up to you and if you decide to change the level of cover further down the line, you’ll be able to update your policy.
Is home insurance mandatory?
Whilst contents insurance is not compulsory, many mortgage providers will not lend money if there is no buildings insurance arranged. If you are buying a freehold property, you will most likely have to sort this out yourself. However, if you are buying a leasehold property or a flat in a serviced building, insurance may be covered in the service/ground rent charges.
The landlord should sort out the buildings insurance for those in rental properties, and it is up to the tenants to decide whether they would like to take out contents insurance or not.
Home insurance gives you that peace of mind that should the unexpected happen, you’ll have support to help you and your family get through it. Find out more about 'Take Your Pick' home insurance and get an online quote today to protect your valuable items and your home.
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