:: Bank of England Base Rate - 0.5%

:: Average Price of Southwest Property £176,894

source - land registry

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insurance guide

Home Insurance (Buildings & Contents)

The two main types of home insurance are protection for the contents of the property and for the fabric of the building itself.

Your home is possibly your biggest financial asset and protecting it against loss or damage is therefore extremely important. If you have a mortgage it is likely your lender will insist you insure the building itself and they will usually be the first claimant should a total loss occur. The majority of buildings insurance now provides a ‘blanket’ cover which provides unlimited cover, up to £500,000 or up to £250,000 as its sum insured, depending on the insurance company providing cover. This means you can have peace of mind that your home will be insured up to these amounts as a rebuild cost. It should be noted that you will not, of course, receive these amounts if it would not cost this to rebuild your home and that there may be an excess to pay on the policy should a claim arise. The excess is the amount you must contribute to the claim. This usually starts from £60.00 for a general claim and, as standard, £1000.00 for heave or subsidence.

A buildings insurance policy usually provides cover for fire, water damage, storm damage and cover for liability to the public. It may also include protection against accidental damage, for example to windows and bathroom fittings.

The contents of your home can be insured either for a set amount or, as with buildings insurance, a blanket cover which will insure them up to a pre determined amount. For home contents these usually range from £35,000 or £50,000 and through to policies which provide an unlimited amount. Contents are protected for fire, theft, flooding and accidental damage to certain items such as home audio visual equipment. The policy can usually be extended to include full accidental damage to all items in the home, legal expenses, pedal cycles and away from home cover for items such as cameras, mobile phones and sports equipment. The excess on contents policies is generally around £50 - £60.00 but can often be increased to provide you with lower premiums.

Your home insurance policy may also provide a no claims discount which will keep premiums lower based on the amount of claims you make.

The information provided here is for general guidance and information purposes only and should not be treated as advice. It is always worth seeking professional financial advice from a suitably qualified expert who is authorised and regulated by The Financial Services Authority.