What is the sensible policy when buying home insurance?
that’s been leaky for years yourself.
Both buildings and contents cover come cheaper if you can pay the first slice of any claim, called the “excess”. You pay less if you accept the first £1,000 rather than the first £250.
You don’t need buildings insurance if you rent. And if you live in a block of flats as an owner, you could be covered by a policy for the whole building – you may pay for this in the service charge.
But you should still consider buying individual contents cover in case of theft, fire or flood.
The second rule is to only cover what you cannot afford to replace. Five year old computers are virtually worthless – other than the material on the hard disk which is not generally protected by insurance.
Contents policies usually have limits that exclude higher value items. You can insure your bicycle or jewellery without specifying what it is on your home cover but often only to a value of £250 or £500 per single item with an overall limit of perhaps £5,000. The Picasso over your fireplace will not be covered – you may prefer to cover high value items with specialist insurers. Before covering your home’s contents think about what you could afford to replace yourself 1. Review policies regularly to reflect changes. 2. Insurers often don’t reward loyalty at annual renewal time. Always shop around. 3. Policies often offer boiler breakdown cover – sometimes cheaper than standalone plans. Always check for exclusions – it may be limited to emergencies only. 4. Covering possessions outside the home can be expensive. Only take this out if you can’t afford to replace. 5. Some policies cover dependants living away – at university for example. Check. 6. If you base your work at home, it’s generally acceptable if it’s just you, a phone and a laptop. But tell insurers if members of the public enter the premises or if you store items for work at home.