Cross Team Properties

There are many good reasons to buy contents insurance even though it is rarely required to do so. A contents insurance policy is something you purchase to cover items based in your home. Some insurers offer contents insurance on a standard house insurance policy, some do not. Some insurers offer contents insurance as a complementary policy with discounts given for the purchase of a second policy. In these difficult economic times there are insurers that offer a small contents insurance policy with the purchase of any home insurance.

What exactly is covered by contents insurance? More than you might imagine. We are all used to buying buildings insurance that covers obvious items such as the house, garage and outbuildings, but what about the things inside the house?

Each contents insurance policy should be customised to fit your needs, but to give you an idea of how important it is, here is a list of some things covered under a typical contents insurance policy and which are covered against theft, fire, vandalism, flooding and earthquakes:

Entertainment systems, jewellery, clothing, books, DVDs and CDs, furniture, curtains, carpets and computers.

Many people do not realise that items outside the home are also covered. For example, your contents coverage may include theft of a handbag or luggage and other similar incidents.

One note: Very expensive or “luxury” items may require a separate “premium” policy or may be added to your existing coverage. Be sure to check with your insurer for details.

When searching for the most competitive deal on home insurance, the best way to get started is to compare home insurance pricing and coverage options.  There are four ways to gather information and see actual house insurance quotes that meet your needs.

Firstly, contact a home insurance broker.  This is a great live resource, as home insurance brokers can answer your questions in real time.  Still, their contacts are limited to the insurers they have deals with, so you won’t get as wide a spectrum of options as you might from other sources.

Secondly, you can go directly to the insurer.  Also known as ‘direct writers,’ insurers can skip that middle step and deal with you directly.  This eliminates time delays and commissions that a broker might charge.  Still, to compare home insurance, you’ll have to contact many different companies. That could mean a lot of leg work for you and will take up a lot of your time.

Branded providers are your third option for gathering house insurance quotes and information.  Sometimes large brands, such as supermarket chains, might dabble in other areas like insurance sales.  Again, a branded provider limits your options to the companies they deal with, so you might be limiting your chance to find cheap house insurance.

The fourth option, or the full search provider, might be the most comprehensive choice available.  This online service prompts you for your information, lets you fill out what you’re looking for, and returns results.  You can compare home insurance side by side, line by line.  Sites such as Moneysupermarket.com and Bestdealinsurance.com are examples of full search providers.

When you take out a mortgage you’ll have to also take out buildings insurance, which will be a condition imposed by the mortgage lender when thy loan you the money for the term of the mortgage.

Buildings insurance covers the expense of rebuilding your property following extensive damage caused by flooding or subsidence, fire or some other disastrous event. This may be of particular concern if your house is located close to a river, for example and the financial fallout from such an occurrence can be considerable. Buildings insurance is therefore a must and you should check that your policy covers damage to fixed items such as kitchens and bathrooms.

Contents insurance is completely up to you to take out or not. Though voluntary, it is strongly recommended that you do, as this is not a perfect world and burglars can strike out of nowhere to ransack your home. As well as the psychological upset of such an occurrence, you could find yourself out of pocket if they take things like computers, TV sets and camera equipment if you don’t have them insured. House contents insurance may also cover possessions in the garden, such as the shed and tools, as well as the garage; you should check the policy details for this.

Home insurance will normally also cover possessions when you take them away from the house and this could include items such as jewellery and handbags, watches and mobile phones. It will not usually cover such possessions when you take them on holiday with you, so you’ll need separate travel insurance to protect them.

Home contents insurance is one element of insurance cover every householder should seriously consider taking out, the other being buildings insurance.

If you take on a mortgage then the lender will require that you take out a buildings insurance policy, which will be a condition of the loan. This is security on the loan for them and protects you too against damage to the house caused by fire, flooding, subsidence or some other disaster that will necessitate rebuilding. Therefore, the sum insured will be the cost of rebuilding the house.

Contents insurance, on the other hand, is optional, but it is sensible to have at least the cheapest form; indemnity insurance, which will replace a lost or damaged item with one of the same make and age. Most people prefer to take out the slightly costlier new-for-old type of home contents insurance, which replaces an item with a brand new item.

Home contents insurance may also cover items in the garden and possessions taken out of the house, such as jewellery, handbags, cameras and suchlike. To cover these and other things on holiday you will normally have to take out separate travel insurance.

Get a home insurance quote, preferable several, before settling on which type of home insurance to take out and read the small print for what is insured and what is not. You don’t want to be paying for unnecessary cover, but neither do you want to leave yourself wide open to being out of pocket when anything unfortunate happens.

A listed building is one of “special significance”, and that can mean anything from someone famous once slept there to the building being considered a national treasure.  If you own or are considering purchasing a listed building, be aware that standard buildings insurance is not appropriate for your property.  You’ll need a separate policy that is more specific regarding the structure, its design and construction, and history.

Listed buildings come in three “grades”: Grade 1 includes buildings of exceptional interest, like Big Ben and Parliament.  Grade 2 buildings are particularly important examples of a more special interest, and Grade 3 buildings are “special interest” buildings.  In Scotland and Northern Ireland the grading system is Grade A, B, and C.

Once a building is listed, it is illegal to alter, extend or otherwise change the character of the listed building, without first obtaining consent from the local planning authority.  Failing to do so could not only result in significant penalties, but void the insurance cover on your insurance, as it is underwritten specifically for the way the building is listed and protected. 

It is likely that a trained insurance adjustor will make an inspection of the property before offering cover, and probably also before providing a quote – be prepared for one or more “tours” of the property. 

Also be prepared for higher than normal premiums, and different exclusions.  The premiums will be higher because any repair or replacement will need to bring the property back to its original condition, and often the craftsmanship that created the original building is no longer common today.  Also, items like thatched roofs or leaded or stained glass windows are not covered; a separate rider for these items may be required, at additional cost.