Things to remember when buying home insurance
Before you accept any binding agreement you should be sure that you know exactly what
you're signing up for. You should be aware of what is and what isn't covered by
the policy. It's altogether too easy to make sweeping assumptions about the policy
cover when you can check the full cover available by reading through the terms and conditions
and also the policy exclusions.
back to top
Building and Contents insurance are both optional, but it's extremely wise to have both. The
potential costs for liability, personal loss of equity and/or possessions makes the annual cost
of home insurance almost seem small by comparison.
back to top
Unlike many situations where a contract is agreed upon where you are required to only answer
or inform based on the questions that you are asked, home insurance falls under 'utmost
good faith' requiring you to inform of any relevant information whether you are asked or
not. When you buy insurance, you must give your insurer, or the person who sells you the
insurance, as much information as you possibly can about anything which might affect their
decision to insure you, or what premium they offer.
Not only must you inform the insurance company of all relevant information before your policy
comes into force, it is your responsibility to inform your insurer of any change in your
circumstances during the policy, for example, if you carry out any home improvements to your property.
Should you have made any changes to your home insurance policy mid-term then it's always
a good idea to shop around near your policy renewal. You may have changed your risk description,
which could very easily mean that there is another home insurance company out there who can offer
you a better deal.
back to top
If at some point during your home insurance policy your property is damaged, take reasonable
steps in order to stop the damage from getting any worse. Many policies cover the cost of
temporary work and provide emergency helplines which will put you in touch with a
competent tradesman who can carry out the emergency repair work. In any case as soon as you
are aware of the damage look to contact your insurance company so they may agree with you
any reasonable action you believe necessary.
back to top
While you are not legally required to have buildings insurance it is usual that if you take out
a mortgage, the mortgage lender will insist upon you having this cover in force and may ask for
proof of cover. If the property were to fall down, the mortgage lender would want to know there
is insurance to cover such a catastrophe. For this reason, most people are sold building
insurance when they take out a home loan.
Something to be aware of is that some mortgage lenders will have deals with insurance companies
to sell their policies when a customer comes to them. This deal may well not turn out to be the
most cost effective or even offer the best level of cover that's right for you. You can take
out insurance cover that you have arranged and should not be pressured into taking out a policy
offered by the mortgage lender. If your current buildings insurance is arranged by your mortgage
lender, it's possible you could be paying too much.
Research shows that people often believe that it is a condition of their mortgage that they take
the insurance offered to them by their lender. In most cases, this isn't true, meaning you're
free to make your own insurance arrangements. That's why it’s a good idea to compare cover and
prices with gocompare.com, there could be substantial savings to be made!
back to top
Here are some steps that you should endeavour to take should you wish to make a claim on your
home insurance policy:
Check that your policy is still in force, and that you are covered for the claim. Whilst you can
contact the insurance company to confirm cover you should also check the terms and conditions of
the policy shown in your policy booklet.
Take reasonable steps to minimize any further loss or damage. If you're in doubt if your
intended action classifies as reasonable action, contact your home insurance company to confirm
the steps you propose.
If you have lost property or if a crime has been committed, report this immediately to the
police. And ensure you keep the crime reference number you are given, your insurance company
will want the crime reference number for their records.
Contact your insurance company as soon as possible and request a claim form is sent to you
straight away. Be sure to complete the claim form accurately and always keep a copy for
your own records.
Should the unfortunate happen and you suffer a substantial claim, you may want to employ
loss assessors to help you with your claim. While the choice of whom you appoint is entirely
up to you we would recommend that you look at the
Institute of Public Loss Assessors website.
The Institute of Public Loss Assessors was founded 35 years ago, and is the recognised professional
body representing Loss Assessors in the UK. Be sure to get details of all fees and services offered,
in writing, before any work is carried out.
Be sure to keep receipts for any costs incurred as a result of loss or damage. You may be able to
claim these back as part of your policy cover.
Finally, stay in contact with your insurance company during the claim; they will be able to offer
you an update on your claims status during the claim as there is little worse than waiting and not
knowing what is happening.
back to top
If you manage to go the length of an insurance policy without making a claim then the insurance
company may reward you with claim free discount. Similar to motor insurance, the level of discount
offered by the home insurance company can differ from one company to another.
With the increased use of the computerised claims register, home insurance companies are becoming
increasingly confident that they can check on the number of claim free years that are claimed
by any policyholder.
back to top