Home insurance can be a minefield, but it’s something all renters and home owners need. If you’re struggling to get to grips with terminology in insurance policies, or are not sure how much excess to opt for, today’s guest post is here to help you!
Working out what home insurance cover you need often results in you paying the most ‘just in case.’ Rather than spending money you don’t need to, here are four things to look out for when it comes to finding the perfect home insurance for you.
Depreciations and Exclusions
There are lots of terms to grasp as you read insurance policies. A home insurance glossary can come in particularly helpful just so you understand what the cover means. Two terms to look out for are depreciations and exclusions. The term depreciations will come into effect if you make a claim and the insurance company offers you less money than you expected because they have made a deduction for the wear and tear of your possessions. You can avoid this by paying a little bit extra for ‘new for old’ so that if something is stolen or damaged you can afford to replace it.
Exclusions are the parts of your insurance that insurance companies won’t cover you for. This will be clearly set out in your policies terms and conditions but make sure you look for it. For example, if you’re in an area liable to flooding you will usually have to pay a little bit extra for ‘Water damage cover’ because it is likely excluded from the standard insurance package.
Protecting your liability
Liability covers not just your own home, but also other people’s that you happen to be in. Say, for example, that you take a naughty puppy over to a friend’s home and it causes havoc – your liability is covered and you can cover the damage with your insurance. Equally, if you throw a party at home and someone has a few too many drinks and hurts themselves, your liability cover will cover medical costs for them. Make sure that this is covered by your insurance policy, it’s important.
Although it may state on your home insurance that your contents are covered to a large sum of money, you may find that individual categories have limits. If you have expensive pieces of jewellery or sports equipment, get in touch with the insurer and explain your situation and that you need specific cover for personal items.
Excess is the fixed amount you have to pay if you want to make a claim. If the cost of replacement was over the price of the excess, you would normally make a claim. Bizarrely, the amount you claim for deducts what you’ve actually paid the insurance company. Say for example your laptop is stolen from your home and it is worth £600 and you make a claim – you will have to pay excess such as £100 and so the insurance company will give you £500 back.
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