Home insurance is one of the most important things you will ever buy for your home, and can provide you with financial support in a way you may never have imagined. In the face of the recent credit crunch, there are a number of people who have fatefully decided not to continue with their home insurance policy, taking a huge risk and paying the consequences.
Home insurance covers a customer in a huge number of ways, against a variety of different potential disasters. Most home insurance policies are broken up into two different sections. Buildings insurance provides insurance for the structure of the home, while contents insurance provides customers with insurance for the contents of their home.
The Buildings insurance part of a home insurance policy protects the structure of the home, and any external outbuildings, like the garage, or shed. It also covers any doors, windows, fences and gates around the property, and protects bathroom suites, kitchen worktops and units and built in wardrobes within the home. The buildings insurance aspect of your home insurance policy will provide you with insurance against damage caused by fire, vandalism, water damage from burst pipes of leaks within the home, storms and flood damage.
One example of how important buildings insurance is came from a customer who didn’t have buildings insurance, and saw his home burn down. He then had to continue paying his mortgage, as any mortgage company would refuse to cancel a mortgage, as well as paying for somewhere else to live. On top of that he had to pay for his home to be safely demolished, and then completely rebuilt. If, like most of the UK, you couldn’t afford for that to happen, then you can see how important home insurance is.
Contents insurance insures the contents of your home, including the carpets, furniture, furnishings and any belongings you have in your home. It also insures all of your electrical items, like the television, DVD players, game consoles, the fridge, freezer, washing machine, and any other belongings in your home. You will need to estimate the value of your belongings when you take out home insurance so be sure to add the value of the clothes and shoes in your wardrobe, and the contents of your kitchen cupboards, fridge and freezer, areas people often forget.