5 Things to Look for in a Home Insurance Policy - Broke in London

5 Things to Look for in a Home Insurance Policy

Guest post by Zoe Price

Taking out home insurance is a cost-effective way to protect your property, but it’s important to find the right type of cover for your needs. There can be significant differences between one policy and another, so it’s essential to pay close attention to the small print before you decide which one is right for you. To ensure you get the best home insurance, take a look at these five things to look for in a policy:

1. Level of Cover

Home insurance policies typically cover either the building, its contents or the building and contents. While a building-only policy covers the structure itself and fixtures and fittings, like integrated kitchen appliances, showers and sinks, it doesn’t extend to items that can be transported. In contrast, a buildings and contents policy covers everything included in a building-only policy, as well as the items that you’d usually take with you when you move, such as small appliances, electronics and furniture. 

Buildings and contents insurance is the more comprehensive option, which is why many people believe it’s the best home insurance. Although general wear and tear isn’t generally covered by home insurance, look out for optional extras if you want to enhance your level of cover even further. 

2. Cost

The cost of the policy is often the first thing homeowners look at and you certainly don’t want to pay more than you have to. If you want to invest in the best home insurance without overspending, carry out a quick comparison search to find the best price. At Quotezone, you can compare like-for-like home insurance policies from a wide range of providers. As an independent and unbiased service, you can be confident that the policies and prices available via Quotezone are totally impartial. What’s more – you can save time and hassle by purchasing your home insurance policy online or over the phone. 

3. Mortgage Requirements

Home insurance isn’t mandatory in the UK, but many mortgage lenders require borrowers to have a policy in place as part of their terms and conditions. This is because your mortgage lender has a vested interest in making sure your property remains in good condition and retains its value. 

Most mortgage lenders stipulate that a basic home insurance policy should be in place, although a building-only policy is usually sufficient to meet their requirements. However, it’s worth checking the small print on your mortgage agreement to ensure that the home insurance policy you choose does meet their criteria. 

4. Optional Extras

Including optional extras in your policy can extend the level of cover you receive and give you peace of mind. Many home insurance companies allow you to incorporate accidental damage into a policy, for example. Alternatively, you may want to add cover for legal advice and expenses arising from property damage and disputes. Similarly, identity theft cover and home emergency cover may be available as an optional extra when you take out a home insurance policy.

These optional extras are often available at a relatively low cost, so it’s worth comparing the cost of a policy with the extras and without. By doing so, you can ensure you’re getting maximum value from your home insurance and benefiting from the highest level of cover available. 

5. Policy Limits

Most insurance policies don’t cover unlimited losses, regardless of what causes the damage or loss. Due to this, you’ll want to ensure that your policy limit is high enough to cover the cost of rebuilding your home and replacing the contents in the event they were destroyed.

If your property is worth around £400,000 and the cost of replacing its contents is estimated at £50,000, for example, you’ll want to ensure that the policy you choose doesn’t impose maximum limits beneath these thresholds. Bear in mind that many policies have a maximum limit for individual items too. This means that valuable items, such as jewellery, antiques or electricals may require separate cover if their value exceeds the maximum ‘per item’ policy limit. 

Save Money on Home Insurance

If you want to protect your home and its contents while maximising your budget, there are ways you can save money on home insurance. Buying buildings and contents cover from the same provider can enable you to access as a discount, for example. 

Similarly, paying for your policy annually, rather than monthly, usually reduces the cost. In addition to this, installing security devices such as alarms or cameras that are approved by your home insurance provider can lower the cost of your premiums.

However, comparing providers and policies is usually the best way to ensure you’re getting the highest level of cover for the lowest price. By comparing like-for-like policies, you can adjust your requirements to create a cost-effective policy that suits your needs and fits your budget.