Imagine waking up to find your home severely damaged, only to discover that your insurance won’t cover the repair bill. This could leave you facing unexpected costs amounting to thousands of pounds.
We often hear the phrase ‘safe as houses,’ giving us a sense of comfort. But how secure is your home really? The truth is, your home is only as protected as your insurance policy allows. You might be shocked to learn that your current home insurance may not cover all forms of damage. That’s why it’s crucial to ensure your coverage is adequate. We urge everyone to review their policy and confirm they’re fully insured.
Does your home have to be insured?
While home insurance—often called buildings and contents insurance—isn’t a legal requirement, many homeowners choose it for the peace of mind it provides.
If you have a mortgage, your lender will likely require buildings insurance to cover the full cost of rebuilding your home in case of major damage. However, having buildings insurance doesn’t automatically mean your belongings are protected. Contents insurance, which covers your personal possessions, is typically a separate policy. It’s important to understand the distinction and ensure you have both types of coverage to protect your home and everything in it.
What happens if your home isn’t insured?
If you don’t have home insurance, then you will have to cover the cost of any loss. For example, if you suffer property damage, theft or even accidental damage, the onus is on the homeowner or tenant to pay to fix the damage or replace lost or damaged items. If you don’t have home insurance, then you could be facing a huge bill some day.
Related: Home insurance: is it worth the price?
Can you insure a home if your name is not on the mortgage?
You can obtain a contents insurance policy even if you do not own the property, as this coverage is designed to protect personal belongings rather than the structure itself. However, buildings insurance must be held in the name of the property owner, as it covers the physical structure.
For instance, if you hold a mortgage, you are considered the property owner, and the buildings insurance policy should be registered in your name. Conversely, if you are renting, buildings insurance is not your responsibility. In such cases, we recommend tenants secure their own contents insurance to protect personal possessions. Additionally, it’s advisable to verify whether your landlord has landlord insurance to cover the building and any liability associated with renting.
How do I find out if I have home insurance?
There are two types of people. There are those who change their insurance provider every year and there are those who let their policies auto-renew. However, there are some people who fall into a third category: those who think they are insured, but actually aren’t.
For various reasons, people often think they have insurance, when actually they don’t. Not every insurance policy auto-renews. Sometimes payment details change and renewal reminders don’t get paid. At other times people assume, because they have a mortgage and have buildings cover, that this also covers their home contents. But that’s not often the case.
Do you know if you have buildings and contents insurance?
Here are a few tips you can use to find out.
- Where do you keep your important documents?
Are your policy documents stored there?
Are they up to date? - I can’t find my insurance documents.
Do you remember the name of the insurance broker or insurance company?
Did you buy your insurance online?
Try searching through your email.
Check your bank or credit card statements for a payment to an insurance company. - You have insurance but don’t have any documents.
If you bought your insurance online, you should be able to access your documents via their website. Or you could give them a call and ask them to reissue the policy documents to you.
Is home insurance and buildings insurance the same?
No. It’s important to note that insurance companies sell different types of insurance:
Buildings Insurance; Household Contents Insurance; and a Combined Buildings and Contents Policy.
What is Buildings Insurance?
According to the Association of British Insurers:
“Buildings insurance protects you against the cost of repairing or rebuilding your home if it is damaged or destroyed. It covers the structure of your home (e.g. the roof, walls and windows) and any permanent fixtures and fittings, such as fitted kitchen units and bathroom suites.”
If you have buildings insurance you should be protected against fire damage, flood damage, water damage, subsidence, storm damage, burst pipes, and theft. But please check your policy today to find out your level of cover.
What is Household Contents Insurance?
“Contents insurance covers the cost of replacing or repairing your possessions if they are damaged, destroyed or stolen. It includes everything you would take with you if you moved home including your furniture, kitchen appliances, curtains, bedding, clothing, television, computing equipment and jewellery.” Association of British Insurers.
Your contents insurance policy should cover the cost of replacing or repairing items damaged by fire damage, flood damage, subsidence and theft. You should check your policy to find out the level of cover you have.
If you have any questions about your level of cover, please call PCLA today to ask for free advice.
These 10 actions might invalidate your home insurance
1. You don’t have sufficient cover
Buying home insurance is not as straightforward as it may seem. You may have been persuaded to take out a policy at the same time as your mortgage, but does it provide the cover you actually need? For example, you may have buildings cover, but not home contents insurance.
PCLA are expert insurance claims advisors. If you have any doubts about the level of cover you have, please contact us today for free advice.
2. You make changes to property
Have you recently fitted new windows or doors? Or maybe you have completed a renovation? Whenever you make changes to your home, it’s always best to inform your insurance provider of those changes. Some changes could lower your insurance premium while others could invalidate your cover.
3. You Airbnb your spare room
In most circumstances, you should inform your insurance company that you plan to rent a room in your house to a stranger. You may require a different policy. Failure to disclose, may cause issues if you need to make a claim.
4. You don’t have a home inventory
It’s a good idea to maintain a list of all the expensive items you have at home. This will make sure you have the correct level of cover and also make it easier, should you need to make an insurance claim. Please don’t inflate the value of these items. A good loss assessor will be able to negotiate a settlement that benefits you, so you don’t need to overestimate the value of your possessions.
5. Make sure you remember to lock your doors and windows
If a burglar accesses your home via an unlocked door, it’s unlikely your insurance company will pay out.
6. Failing to maintain your property
Putting off getting a minor leak fixed might save you time in the beginning, but it may invalidate any future insurance claims. Look for ‘wear and tear’ wording in your policy to see how you could be affected if you don’t maintain your property.
7. Pests
If you have an infestation of pests, you should take immediate action. Damage caused by pests may not be covered by your buildings insurance policy or your home contents insurance.
8. Flood risk
Unpredictable weather events are increasing the risks of flooding. Make sure your policy includes flood protection. If you have suffered flood damage and need assistance, please contact PCLA to find out how we can help you.
9. Calling the police
If you discover that your home has been broken into, you should contact the police as soon as possible. You will need a crime reference number to give to your insurance company. If you’ve suffered a break in, please call PCLA today. We understand how stressful this can be and will do our best to ensure you get your full entitlement.
10. Documenting the Damage
If you have a fire in your house, the last thing you’ll want to do is document all of the damage. But your insurance company will require a schedule of loss. As expert loss assessors, PCLA will compile all of the necessary paperwork that your insurance company requires.
Find out if your home is insured today
The only way to know if you are insured, is to follow the simple steps above. If you don’t understand your policy, call PCLA to ask for free advice.
If you or anyone you know needs help making a home insurance claim, call PCLA today.
