Do you have home insurance?
It is a topic often hotly debated in some households, especially our own.
When we moved into our new home, it was something my husband and I discussed a lot.
I’m really keen to have home insurance (both buildings and contents insurance) as I find it reassuring to have cover for the contents of our home as well as the physical building, especially in the event of accidental damage.
My husband, on the other hand, is less keen.
He believes it’s not good value for money and would rather just purchase buildings insurance.
If home insurance is something you cannot agree on in your home, check out this guide to help you decide.
Home Insurance is Expensive
The cost of home insurance can vary quite dramatically.
Some home insurance can indeed be very expensive, depending on which provider you buy your cover from.
In a recent YouGov survey, 30% of respondents stated they felt that home insurance was too expensive.
These issues are coming to the fore again, as the cost of living sores. Many households are considering ways they can reduce insurance premium to save money, but is that the answer?
When my husband and I looked at price comparison sites for home insurance products we found that prices for similar cover varied dramatically.
To insure our home, prices ranged from £165 to around £620, but why is there such a big difference?
The biggest difference between the cheapest home insurance and the most expensive providers is the amount of cover they offer.
The cheapest provider includes around £50,000 worth of contents cover, while the most expensive typically provides unlimited cover with their insurance policy.
If you choose a policy with unlimited cover it is going to be expensive.
If you are able to put a value on the contents cover you require for your home, you are likely to find a cheaper provider.
Home Insurance provides Peace of Mind
I always argue with my husband that having home insurance cover provides us with peace of mind.
It turns out that 41% of respondents to the YouGov survey purchase home insurance for this very reason.
Knowing that the contents of your home will be replaced in the event of an emergency definitely does provide peace of mind.
If you imagine that everything in your home is damaged beyond repair, replacing all those items from your emergency fund is going to make a considerable dent in your savings.
What is bound to be an incredibly difficult time, is bound to become more stressful when you find yourself under this amount of financial pressure.
If you purchase the right life insurance with adequate cover, it can provide many households with peace of mind during what could be a very challenging time.
Home Insurance is Necessary
Many people do not realise that home insurance is made up of 2 types of cover.
There is building insurance and contents insurance.
If you have a mortgage, it is likely that the lender will require that you have buildings insurance to protect their investment.
Buildings insurance, does what it says on the tin, and covers the property in the event of an emergency.
Contents insurance typically covers the items inside your home, but not the building itself.
It is often a matter of personal choice whether you take out contents insurance, but in many cases, it is not necessary.
In the YouGov survey, 49% of respondents believe that home insurance is necessary.
They may believe it is necessary from a lifestyle point of view, or because they know that their mortgage provider requires them to have some home insurance in place.
When deciding whether you need home insurance cover, it is useful to understand the difference between buildings insurance and contents insurance.
Final Thoughts on Buying Home Insurance
When it comes to buying home insurance it’s really important to understand the products you are buying.
Firstly, understanding the difference between building insurance and contents insurance and when you need to have them is crucial.
It can be a useful exercise to think about what would happen in the event of an emergency if you were not to have the right level of cover.
Would your finances be able to stretch to dealing with any issues that arose in this situation.
When you do your research, make sure that you understand the cover that you need and the insurance product that you are buying.
Also, when considering any add on products, check if you have these products included with any other policy you may have.
What do you think about having home insurance cover?
Leave any comments, tips or suggestions in the comment box below.
