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Just like any other type of insurance your home and its contents should be covered against loss, damage, theft, fire and flood. People in the UK should be all too aware of the potential consequences of not having adequate insurance after recent years of flooding leaving people’s homes uninhabitable and possessions ruined beyond repair.

Anyone who has a mortgage is obliged to take out insurance to cover the cost of their building as part of the terms and conditions of the mortgage. Failure to do so means that the agreement terms have been breached, which can be an extremely costly error should the building suffer any structural damage.

The insurance should be sufficient to cover the total re-building cost, including removal and disposal of rubble. This price is generally far higher than the market value of the home. More than the house itself, buildings insurance also covers outbuildings, garages and permanent fixtures such as fitted kitchens and bathroom suites.

Building insurance offers the homeowner monetary protection against damage to property, and permanent fixtures within the building. It does not cover the contents inside the home. These need a separate contents insurance policy.

Contents insurance provides a safeguard for covering the replacement cost of all material possessions such as non-fitted furniture, clothes, electrical appliances, white goods, jewellery, home entertainment systems etc. Contents insurance offered at basic level is known as indemnity insurance. Here, any item that is insured may be replaced with another one of same age. With rising inflation this type of policy does not automatically enable the policyholder to entirely replace their possessions, however they will be able to claim for some of the costs.

Under contents insurance, many UK homeowners prefer ‘new for old’ policy, which is the higher insurance level. However, upon making a claim, it pays for any insured item being replaced with its new version which may or may not equate to the original cost price. Many insurance providers offer add-ons related to home insurance those are optional for which additional charges are made.

It is advisable to check the value of one item replacement. All insurance companies have a pre-set limit, should you have any possessions which exceed this amount you will have to either negotiate to increase the limit or have these items insured as an option extra within the schedule of the policy. It is also worth checking that items such as jewellery are also covered when being worn outside of the property.

Most of the insurance providers offer discounts on a joint policy, when homeowners take contents insurance as well as buildings insurance. Further discounts may also be offered on other insurance policies such as vehicle insurance if also taken with the same company.

The insurance market is extremely competitive; as such it is possible to find some offers which provide adequate insurance at low prices. You should always read the policy terms and conditions before entering into an agreement. Letting the insurance companies know that you are looking for the best deals is a wise approach, as many insurers will offer to beat or match any ‘like for like’ quotes you are offered.

It is also very important to remember that when looking at home insurance UK that each of the insurers are offering exactly the same terms and conditions within the policy being offered, including the excess and single items value limits. It should be realised that the low cost quotes may not provide adequate cover for either your building or its contents.

Swinton offer competitive deals on all aspects of Home Insurance

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