Taking Out House Insurance
If you have a house with a mortgage you’ll have to take out home insurance, which is insurance against damage caused by subsidence, fire and flood; the level of cover required is arrived at by calculating the estimated cost of rebuilding the structure. If you add extensions to the house after taking out the policy the insurer must be informed so that they can provide cover for the added cost of rebuilding.
If you have a lease on a flat in a block, for example, your landlord may already have put buildings insurance in place, so you won’t have to bother. Also, bear in mind that if you leave a property for prolonged periods or let it out without telling the insurance company the policy may be void.
Contents insurance is optional, but is highly recommended, as it covers the replacement of movable items in your home, even when you are using some of them away from the property. It covers furniture and appliances, although fixed items such as fitted kitchens may already be covered by the buildings insurance and possibly also the garage and greenhouse or shed. It’s important to check exactly what is covered by each policy, as there’s no point in covering the same things twice, which will obviously be more expensive.
Travel insurance may have to be arranged when you are taking certain items abroad with you, although again these may already be covered by the contents policy.
‘New for old’ cover on contents is better, but a little costlier than basic indemnity cover, as it will replace lost or damaged items with brand new ones rather than with ones of about the same age.
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