Here at home insurance quotes we get asked on a regular basis what might happen if a customer didn’t take out home insurance, or if they cancelled their existing policy to save money. There are a growing number of people who have been cancelling their home insurance over the last few years, but the consequences for those people could be so bad.
Home insurance provides insurance against a number of different scenarios, including fire, flooding, storm and water damage, vandalism and theft. If you consider the value of the contents of your home, including all the clothes, shoes, furniture, electrical items, DVDs and Blu-Rays and everything else having to replace that if it was damaged would be bad enough.
Contents insurance provides customers with protection for the contents of their home.
Customers who decide not to take out buildings insurance, or give up their buildings insurance policy are also putting themselves at extreme risk, with buildings insurance offering protection against the same outcomes as contents insurance, but protecting the structure of the home instead.
A customer with a £200,000 home who didn’t have buildings insurance could see their home burnt down and would still face having to pay the mortgage on their home, as well as for alternate accommodation, as the house would be inhabitable. On top of that they’d also need to find the money to knock down and rebuild the house.
If they’d still had buildings insurance the insurance company would have paid for the customers alternative accommodation, as well as for all the rebuilding costs and their contents insurance would pay for the replacement of the contents of their home.
Home insurance is a vital form of insurance to have when you own and rent a home, and customers should never consider living in their home without it. Whilst life insurance may seem to be an extra expense now, very few people can truly afford to not have it if the worst happened and everything went wrong.