Top Tips for Home Insurance

26th May 2011

With so many different types of home insurance policies available, it can be a bit daunting ensuring that you’ve got the best value and the best policy you need; especially when the family home is the most prized possession. At a basic level, home insurance covers the external buildings themselves, but most people also choose to cover their home’s contents too.

Staysure, the over 50s experts, has put together these top tips to help you ensure you’ve got the right policy for your needs, and at the right price.

1) Knowing what’s covered
It sounds simple, but according to one of Staysure.co.uk’s recent surveys, many people don’t know what is actually covered by their policy. For instance, 14% of respondents didn’t realise that personal belongings could be covered under their home insurance policy, even when they’re traveling abroad. The number one tip is to call your provider with any queries and check what your cover provides; every policy is different and you may be surprised by what is and isn’t actually covered.

2) Beware of the upselling mortgage broker!
Many banks and building societies encourage borrowers to take out home insurance tied in with their mortgage but you may find you are paying more than if you researched the market and insured through a broker. It is always worth looking for the policy that suits you best and provides the best value. Remember – your bank or building society will insist that you take out buildings cover (and prove to them you have covered the accurate re-build cost) but you are free to shop around and choose who you actually insure with!

3) Estimates – the key to the right policy
Always ensure that you have accurate estimates for both the re-build cost of your home and the replacement cost of all the contents you had in mind when taking out the policy in the first place. This is the only way of seeing which policies are sufficient for your needs. Some insurers offer blanket cover up to a certain level e.g. £500,000 but it is always worth knowing an accurate re-build cost as some insurers still use this to calculate the premium, and it could get you a better deal.

4) Keep an eye on annual increases
Most home insurance policies will increase year on year on the basis that re-build costs are also increasing, but be wary and always keep an eye on these increases. If in doubt, ask your insurer or provider for more details.

5) Don’t be afraid to ask for cover
You may be surprised at what can be covered by home insurance, so don’t be afraid to ask. Here are just a few things that you may not have considered:

• Freezer contents – useful if you’re going away for a long period
• Garden features and outbuildings – worth thinking about increasing your insurance when you kit your garden out for the summer
• Emergency services’ damage – in case they need to break in to your home in an emergency
• Legal cover – offering legal advice on a wide range of issues, from identity theft to consumer disputes
• Water leaks – many policies will cover these because they know that acting quickly will prevent bigger problems/further costs in the future
• Home emergency cover – in case your home becomes uninhabitable or unsafe

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6) True value
Underestimating the true value of your home’s contents is a common mistake. Overlooking a few of those recent purchases could mean that some items may not be covered under your current policy, or you could be paying too little or worse - too much! An up to date valuation of your possessions now could save disappointment in the future, so take note of what you have in your house that is of value and discuss it with your home insurance provider to ensure you have everything covered. Taking photos of your possessions, particularly in situ, is also highly recommended as this will help support any claims you may make, if you lose them or they become damaged, and as well as this it is always worth keeping the receipts of household items to provide proof of purchase, the date of purchase and the price you paid. It is likely your insurers will ask for a receipt in the event of a claim. Finally, don’t keep high value items in a shed, garage or separate outbuilding as it’s unlikely they will be covered under your main household contents policy. For small personal possessions it pays to invest in a safe that can be secured down and hidden away in a cupboard.

If you are uncertain of what you should be paying for your home insurance, or would just like to talk to a home insurance expert you can contact Staysure on 0800 088 4775or visit their website.

Staysure’s home insurance experts, have a wide selection of home insurance policies specifically tailored to the over 50s, and work with a wide range of trusted providers including Allianz, Legal and General, Ageas, Aviva, Paragon and Towergate to bring you the best deals around.

ENDS