Look carefully at home insurance

If you’re about to move into your first place then you need to double check what kind of home insurance you need.

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It’s usually quite simple. If you are a homeowner with a mortgage on your property, then you need to get buildings insurance as it’s a legal obligation as part of having a mortgage. This way, if your property were to be destroyed or damaged beyond repair, the mortgage lender would be able to recover its losses via your insurance policy. But even if you don’t have a mortgage to pay on your property and you own it outright, you’re unlikely to risk not having that kind of protection on what is likely to be your most valuable asset. So pretty much every homeowner will have buildings cover.

It’s a good idea to get a few building insurance quotes, so that you can see if you are getting a good price. The internet has made this process much easier, as you can input all your data just one time and use a price comparison website. Many insurers offer discounts to those customers who take out a combined buildings and contents home insurance policy, so make sure you get a couple of combination quotes too.

If you’re a tenant, you won’t need to worry about buildings insurance as this is your landlord’s responsibility. However, building insurance is there to provide cover for the structure of the property – the walls, roof, etc, and the permanent fixtures like a fitted kitchen and bathroom. What your landlord’s insurance won’t cover is the contents contained within the property – otherwise known as your belongings.

Tenants should be aware that none of their possessions are covered by the landlord’s insurance, but it’s possible to get a home contents insurance quote specifically designed for tenants from most insurers. If the quote comes in too high, you can try to get it reduced by specifying a lower contents value and by offering to pay a higher voluntary excess before making a claim.

Whether you’re a tenant or a homeowner, you’re likely to need at least some home insurance. Shop around to make sure you’re getting the best cover at the most competitive price.

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