Home Insurance

Home insurance is a way of protecting yourself financially in the event that your home or personal belongings are damaged, destroyed or stolen. There are different levels of cover available, depending on the policy you choose and your insurance provider. You may wish to cover only the contents of your property, or require more comprehensive insurance to cover subsidence and replacement locks following a break-in. There are a number of different types of home insurance. The two main types are Buildings Insurance and Contents Insurance.
Most home insurance policies contain both buildings and contents cover, but you can choose only one type of protection. In addition, you may wish to consider specialised home insurance, which can help provide a more suitable level of cover if your property has special features such as a thatched roof. Like most insurances, choosing the right policy can be difficult but shopping around should help you find the deal that best suits your needs and your budget.

Levels of cover Home sweet home. There are a number of different types of home insurance. The two main types are Buildings Insurance and Contents Insurance. Most home insurance policies contain both buildings and contents cover, but you can choose only one type of protection. In addition, you may wish to consider specialised home insurance, which can help provide a more suitable level of cover if your property has special features such as a thatched roof. Like most insurances, choosing the right policy can be difficult but shopping around should help you find the deal that best suits your needs and your budget. Home insurance is a highly recommended form of insurance, and even though it is not legally required, the majority of homeowners have some kind of cover. In addition, most lenders will only offer you a mortgage on your property if you have home insurance. For most people, the single biggest purchase in their lives is their home; purchasing home insurance financially protects you against damage to your property and loss or damage to its contents.	Types of Home Insurance Make the right decission.   There are two main types of home insurance: Buildings Insurance and Contents Insurance. Building insurance covers the actual structure of your property, such as the roof and walls, whilst contents insurance covers the items found in your home, such as audio equipment and furniture. Many insurers will provide both types of insurance in one policy, reducing the need for separate cover. Some insurance providers will automatically provide free contents insurance when you take out their buildings insurance policy. In addition to these two main types of cover, many insurers offer specialised home insurances, each of which aims to cater for a specific kind of property. For example, if your property is a cottage with a thatched roof it is considered to be at a higher risk of suffering fire damage; as such, you may find obtaining conventional insurance difficult or find that the cover provided is inadequate. Specialised Thatched Roof / Cottage home insurance would provide you with appropriate cover to better insure your property.
Home Insurance Cover Pay attention to details. Although you can purchase each type of insurance separately, a single home insurance policy will usually include both buildings and contents insurance. Buildings insurance protects the physical structure of the house, such as the roof and walls, whilst contents insurance covers the items within your home, such as furniture and electrical appliances. Whether you choose to purchase each cover separately will depend on your circumstances. For example, if you are the landlord of a property and do not have any items of value within the house, you may consider contents insurance an unnecessary expense. A standard home insurance policy protects your property's structure and contents against loss or damage. This may occur due to: fire, smoke, lightning, storm, flood, earthquake, explosion, burst water or oil or gas pipes, riot, civil commotion and theft. In addition, you are also covered for loss or damage to your building as a result of a 'foreign object' colliding with it. A foreign object is anything that was travelling outside of your home before the collision occurred, such as a car, an aeroplane or a falling tree. There are certain incidents which will usually not be covered: these are explained in Amendments & Exclusions.	Making a Claim The sooner the better.   Your home insurance documents will clearly explain the procedure that you are required to follow if you wish to make a claim. Typically, you should telephone your insurance provider's claims helpline as soon as you realise that you need to make a claim. This number is given in the policy booklet, which you should receive when you take out the insurance. Calling your insurer gives you the opportunity to discuss your claim with a customer service advisor, who can answer any questions you may have and inform you as to whether your claim is valid or not. You will be required to give certain information over the phone to confirm your claim, such as your policy number, a crime reference number (if appropriate) and the estimate of the cost of the damage or loss. If you are not claiming for a large amount, your insurer may settle your claim immediately. For larger claims which cover a bigger loss or a greater amount of damage, your insurer will usually arrange a representative or 'loss adjuster' to inspect your property. This gives your insurer the opportunity to confirm the damage or loss and repairs required. Most insurers have several specialists who can replace damaged items quickly and / or carry out any necessary repair work. As long as you filled out your home insurance application form completely and honestly, your claim is usually settled quickly. If you lied on your application form however, your insurer may invalidate your claim and cancel your policy. Before any claim is settled, your insurer will ask that you pay the excess agreed in your policy. The excess is the part of any claim which you must pay yourself. This is a set amount of money which varies between insurers and policies: typically, the excess is between fifty and one hundred pounds.
Special Circumstances Get more then expected. Home insurance providers are willing to cover you for a range of special circumstances. Some of these will be included in a standard home insurance policy, but others will require you to pay an additional premium. If you think you need extra cover, you should discuss your requirements with your insurer, since the terms and conditions of protection will differ between insurance providers and policies. Typically, certain special circumstances will automatically be covered by your home insurance policy. For example, you are usually covered if a visitor to your home accidentally dies or is injured as a direct result of an incident within your property. You are also protected if their personal property is damaged, lost or stolen. Naturally however, it is always important to check the exact terms and conditions of your policy, because insurance providers will differ in terms of the cover they provide for third parties. There are a number of special circumstances that a home insurance policy could cover. These include: moving house second properties and holiday homes landlord (buy-to-let) insurance student possession cover	Amendments & Exclusions No-claims bonus reduction.   An amendment is any change in your circumstances or change to your property that would have an effect on your home insurance. If you make any amendments you must inform your insurer. This applies to changes which would affect either buildings or contents insurance. Amendments include: an alteration to your house which in any way alters its rebuild value (the cost of rebuilding it if destroyed), such as changing the number of bedrooms if you purchase additional items of value, such as furniture or expensive flooring Exclusions No insurance policy can cover you for every eventuality. Anything that is not covered by your home insurance is referred to as an 'exclusion'. There are also certain restrictions to bear in mind before you make a claim. Each insurance policy is different: ensure you read your policy documentation carefully, so you fully understand which exclusions and restrictions apply to your insurance. In general the following things are excluded: Radioactive contamination Pollution contamination Damage / loss as a result of war, invasion or terrorism Damage / loss as a result of sonic bangs or waves (for example, from aircraft travelling above the speed of sound) Rot, pre-existing damage or deliberate loss / damage caused by you Certain electrical or electronic breakdowns, which are the result of computer viruses or the device failing to recognise the correct date or time Damage / loss if your property is left unoccupied for more than sixty days
Making a Complaint Hope it never happens. If you believe that your home insurance policy was mis-sold, or if you are unsatisfied with your insurance provider, you may wish to make a complaint. In this case you are advised to: Make the complaint to your insurance provider first: if they are FSA (Financial Services Authority) regulated they should have published a 'complaints procedure' on their website or have a leaflet available detailing the correct procedure. They should investigate your complaint thoroughly and make enquiries as appropriate. If you make your complaint in person or by telephone, note down the name of the person with whom you spoke, as well as the date and time of your call or consultation. If you do not hear back within three weeks time, follow up your phone call or consultation with a letter detailing your complaint: keep copies of the complaint letters that you send for future reference. If you are unhappy with the response that you receive, you can use an independent complaint system. You can contact the Financial Ombudsman Service (FOS) within six months of the final response that you receive from your insurance provider. The FOS is contactable via telephone on (+44) 0845 080 1800. If you feel that there were unfair terms in your contract, you can refer your case to the Financial Services Authority (FSA) or to the Office of Fair Trading (OFT). The FSA do not have the authority to refund any money that you have lost due to unfair contract terms, but they will appeal to your insurance firm on your behalf. Each of these organisations can be contacted in the event of a complaint regarding your home insurance policy, or loss of money due to the insurance company's handling of your policy: The Citizens Advice Bureau (CAB) citizensadvice.org.uk The Financial Services Authority (FSA) moneymadeclear.fsa.gov.uk The Financial Services Compensation Scheme (FSCS) fscs.org.uk Financial Ombudsman Service (FOS) financial-ombudsman.org.uk	Cancelling Your Home Insurance Policy Better have something good.   When you take out a home insurance policy, you have (by law) at least a fourteen day 'cooling-off' period. This gives you the chance to reconsider whether or not the policy really fulfils your needs. During this time you can cancel the policy, and if applicable receive a full or partial refund of any insurance premiums that you have already paid, depending on how long you were insured for and whether or not you made a claim within this period. If you wish to cancel your home insurance after the cooling-off period, you may receive a partial refund of any premiums paid minus the period during which you were covered. In most cases, your insurer will also deduct a 'reasonable' administration charge. If you owe your insurer any premiums, you must repay these before the cancellation can be recognised. As with any type of insurance, if you purchased your policy off your insurance provider's premises (for example, if you purchased online), you must have been given clear written notice of your right to cancel. If not, the contract is unenforceable. This written notice usually accompanies a cancellation form and the correct cancellation procedure, which you must follow if you wish to terminate the policy. You are advised to send any notice of cancellation by recorded mail, since the date you post the letter is considered to be the date on which you cancelled. If your insurance provider wishes to cancel your policy, they can do so by giving you a few days' notice: typically just seven days. If you fail to make a premium payment, your insurer can cancel your policy from the date your payment was due.