Buildings and contents insurance is something we seldom think about until we need it. Buildings and contents insurance are a combined insurance that will cover or replace any damage that might occur to the house or its contents, including loss. It is essential for all mortgaged houses, and most other homeowners who do not have a mortgage will also have this type of insurance. It is possible to get the two insurances separately, although you will find that most providers offer them as a combined cover. According to The Times recently the cost of not reviewing your cover annually can be up to £300. The main problem however is that in the event of a claim you may find that your cover doesn’t meet the cost of repairing the damage or rebuilding your life.
The principle factor here is the sum insured. This must be enough money to clear the site and rebuild your home if it was destroyed by fire or flood, for example. The cost of rebuilding houses rises each year with inflation. Protecting, or index-linking your sum insured means you won’t be left underinsured. Other features that you should consider include cover for the underground pipes and cables bringing water, gas and electricity to your home and sewage away from it. This can often cover, tracing leaks and dealing with burst or blocked pipes. Loss or theft of keys cover, paying to replace locks in the event of your keys going missing.
What does your contents insurance cover? How much are your valuables, jewellery, watches, computers covered for? Does the single item limit on valuables cover your most expensive item? If you look at the contents of your home and think about the cost of replacing most or all your possessions, then the total may be more than you think. An item that can often be under insured is the contents of freezers and fridges. Adding up the value of clothes, record and book collections, curtains may surprise you. Does your contents insurance cover your shed or garage? If you are a keen gardener rebuilding a flooded garden could be expensive.
The point of this is not to worry you, but to suggest that reviewing your insurance regularly rather than allowing your existing cover to roll over every year. Spot On Mortgages will be pleased to help you review your existing policy and help you to plan effective, comprehensive cover for your home and contents. Get in touch to discuss your situation.