What should one cover - Home insurance UK

What should one cover - Home insurance UK

Do we actually need to have building and contents insurance? Well, it's not compulsory to have either, but it IS wise to have them both.

That said, should you take out a mortgage, your lender will very likely insist that you purchase buildings insurance. This is because if your home is destroyed by a fire or slips into the sea, they will want to know that you as a borrower can cover the occurrence of such a catastrophe. In fact, if your mortgage lender doesn't insist on you taking out buildings cover, then you should seriously consider going elsewhere for your mortgage, because the lender you are talking to plainly has no sense.

Do remember, however, unless you are taking out a special mortgage deal that demands that you take out insurance with your lender in return, you are not obliged to arrange your home insurance with your lender. It is likely in fact that you will get a better home insurance deal by shopping around, so check the small print of the mortgage before you accept that you are actually committed to buying insurance from them.

However, it should be pointed out that the mortgage lender does not necessarily try to force you to take out buildings and contents insurance for money reasons. It's normally because it is more convenient for the lender as they will know exactly what is covered. They will want to check and approve of any other policy, and may even charge you a fee for doing this.

So, buildings cover is there to cover you if your home falls down. It also covers permanent fixtures and fittings too, as well as fitted kitchens, baths and toilets, bedroom cupboards and interior decorations. To understand what should be covered, there is a test, which is to work out if you can remove the item and take it with you should you move home. If you can, then you need contents insurance to cover it. If not, you will be covered by buildings insurance.

Other places that can be covered are outbuildings like greenhouses, garages and garden sheds.

Contents cover will insure your household possessions such as clothes, furniture and ornaments. You can get extra cover for items such as frozen food, money and garden equipment. Contents cover is obtained for either a specified amount, for instance £15000, or you can add up the total value of items.

You can also cover items away from home such as skis, sports equipment, bicycles and musical instruments. You should check to see if they are covered outside the UK. This will help reduce the cost of travel insurance, as you will not need personal possessions cover.

What should one cover - Home insurance UK

© AskFinancially.com 2008

Contents Insurance

Insurance & Loans

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What should one cover - Home insurance UK

© AskFinancially.com 2008

Contents Insurance

Insurance & Loans

Copyright