What is a UK home insurance policy?
A UK home insurance policy provides financial protection for those who own or rent their home against any disaster occurring as a result of water or flood damage, fire, vandalism theft and in many cases, accidental damage.
A UK home insurance policy is made up of two main different parts of the insurance policy, buildings cover and contents cover, but may include additional extras like boiler cover, which looks after the cost of repairing or replacing a boiler should it stop working, or appliances warranties which extends the warranties of any appliances in your home so that you’re always covered, whatever happens to them.
How does a UK home insurance policy work?
A UK home insurance policy looks after your home in many different ways, but should your home or any of the items within it be damaged or stolen as a result of fire, theft, storm or flood damage, water damage or vandalism, then the insurance company will pay out a lump sum to enable you to rebuild or replace the damaged items.
UK home insurance policy – buildings cover
The first part of most UK home insurance policies is the buildings cover and this is the most expensive part of the cover. Those who rent their home, or who own their home through leasehold may not be responsible for the building, and may not need this aspect of the cover.
Buildings cover provides a customer with complete cover for the actual structure of their home, and this includes any internal fittings that are permanent, including kitchen units and worktops, and any bathroom suites or built in wardrobes.
Buildings cover also looks after any external walls and fences, gates and doors and any outbuildings including the shed and the garage.
UK home insurance policy – content cover
The most common part of a UK home insurance policy is the contents cover, and this includes a customers carpet, and all the other contents of their house, shed and garage.
UK home insurance policy contents cover looks after all of the furniture, clothes, shoes, kitchen utensils, appliances and cupboard contents, including food and also looks after the food found in a freezer and fridge.
When you take out contents cover as pat of a UK home insurance policy, you will be asked to estimate the value of the contents of your home, and it’s important to be careful, as many people underestimate and then find that they will not receive a big enough pay out as a result to replace everything they owned before.