House Insurance Choices

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When it comes to house insurance, there are two choices.
Buildings insurance is often compulsorily required by the lender when you take out a mortgage.
Home contents insurance on the other hand is your choice.
While buildings cover has to be taken out you may choose whom you want to take the policy with, you do not have to take out protection from your mortgage lender, unless it is as part of your mortgage contract.
You may be able to get the cheapest and most suitable policy if you allow a specialist website to search around for the insurance on your behalf.
Why is buildings insurance needed? Buildings insurance is needed in case your home was damaged or destroyed and had to be rebuilt.
Buildings insurance generally - but not always - covers damage and destruction caused by fire, storm, lighting, flooding, subsidence and vandalism.
 However, you need to check the wording in any house insurance you are considering, as there will often be limitations and exclusions.
Why you may want to consider contents insurance You may want to consider what the sum insured will be for your contents insurance by going around your home and adding up the cost of all your bits and pieces.
When you have checked in cupboards, drawers, your attic and garage your contents may add up to many thousands of pounds.
If you were to lose everything in the worst-case scenario, your contents have to replaced, and without insurance the cost has to come out of your own pocket.
If you have contents insurance to fall back onto, you have financial security that you are protected.
Ways you may be able to save on your insurance How much you choose to insure The amount that you choose to insure goes towards calculating how much you have to pay for the insurance premiums.
When considering this to keep down the cost of the insurance it is important not to under insure as this means you may lose out in the event of a claim.
However, you also do not want to take out too much insurance, as this means you may be paying for insurance that is not needed.
How much excess do you want to pay? All insurance providers state a minimum amount of excess you pay towards a claim but you may want to pay more to help keep the insurance premiums down.
When considering this amount choose carefully as you do have to find this amount in a cash lump sum.
Secure your home Security is often taken into account when deciding how much you will pay for your house insurance.
If you install a good quality alarm system, door, and window locks, this may help to keep down the cost of your insurance premiums each month.
Your premiums may also be lower if you install an alarm at your premises.
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