Determining how much home insurance cover you need can feel overwhelming, but it’s crucial to ensure your home and possessions are adequately protected. Imagine the peace of mind of knowing that your most valuable asset is safeguarded against unexpected disasters. In this article, we’ll break down the key factors you need to consider, such as the cost of repairs, the value of your home’s contents, and specific risks in your area.
What is home insurance?
Home insurance is a type of coverage that protects both your home and its contents. There are various types of home insurance policies available to suit different needs.
Depending on the type of policy you choose, it may include both buildings and contents cover, or you can purchase them separately. Buildings insurance covers the structure of your home, while contents insurance protects your personal belongings. These covers will hopefully ensure your insurance provider will compensate you if your home is damaged or destroyed by events like leaking pipes, fire, storms, etc.
Tip: learn how a loss assessor can help you get the full settlement you’re entitled to.
Why do you need home insurance?
Home insurance provides financial security by covering your home and personal belongings against damage or theft, including incidents like fire, storms, vandalism, and burglary, ensuring financial protection.
Additionally, it can help cover legal liabilities if someone is injured on your property. The policy not only assists with repair or replacement of belongings but also covers costs for temporary housing if your home becomes uninhabitable, providing comprehensive support during challenging times.
Learn more: Do you really need home insurance?
What types of home insurance can you get?
There are two main types of homeowners insurance policies: buildings insurance and contents insurance. Buildings insurance is designed to protect the physical structure of your home, including critical elements like the roof, walls, and floors. This type of insurance also includes permanent fixtures, such as built-in cabinets or kitchen fittings.
On the other hand, contents insurance focuses on safeguarding your personal belongings, such as furniture, appliances, clothing, and other valuables within your home. It ensures that, in the event of damage or theft, you can replace your possessions without bearing the entire financial burden yourself. These policies can be purchased separately or as a comprehensive package depending on your needs..
Buildings and contents insurance: what’s the difference?
Buildings and contents insurance are both types of insurance that can protect your home in the event of damage or theft. However, there are some key differences between the two.
Buildings insurance cover protects the structure of your home, as well as any permanent fixtures and fittings, such as your kitchen or bathroom. Contents insurance covers the cost of your belongings, such as furniture, clothes, and electrical items.
You can choose to take out buildings insurance, contents insurance, or both. If you own your home outright, you may only need contents insurance. If you have a mortgage, your lender will usually require you to have buildings insurance in place. This is because the lender has a financial interest in the property and wants to ensure it is protected from risks like fire, storms, or other significant damages that could affect its value. Buildings insurance helps protect the lender’s investment by covering the cost of rebuilding or repairing the structure in the event of damage.
It’s essential to ensure you have adequate insurance to avoid facing significant costs if property damage occurs without sufficient coverage.
What does buildings insurance cover?
Building insurance, also known as buildings insurance cover, is a type of insurance cover that helps to protect your home in the event that it is damaged or destroyed. It covers the physical structure of your home, as well as any fixtures and fittings, such as your kitchen or bathroom. If you have a mortgage, your lender will usually require you to have a building insurance policy.
If you need buildings insurance, it is important to understand what your policy covers and what it does not cover. Generally, buildings insurance policies will cover the cost of rebuilding your property if it is damaged or destroyed, but will not cover the cost of any contents inside the property. It’s also important to remember that buildings insurance may not include cover for outbuildings such as sheds or garages. It’s important to check the small print before taking out the cover. Some standard policies could require a separate policy or additional coverage depending on where the garage is located and what purpose it serves.
How much buildings insurance cover do you need?
This is a difficult question to answer as it depends on a number of factors, including the value of your possessions, and the cost to rebuild your home from scratch. Generally speaking, you should insure your home for at least the rebuild cost of your property. This figure could be more than your home is worth. That’s because if your home was destroyed, you would need to rebuild it from scratch and this could be very costly.
At Property Claims Loss Assessors (PCLA) a common problem we come across is people being under-insured. There are various reasons for this, but the main one seems to be that people insure their home for what they bought it for. It’s really important that the policyholder insures their house and outbuildings for the full cost of rebuilding.
To work out how much buildings insurance cover you need, you need to think about how much it would cost to rebuild your home. This is because most insurers will only pay out up to the cost of rebuilding your home, not the market value. The cost of rebuilding your home can be different to the amount you paid for it or the current market value. You can use the rebuilding cost calculator on the Building Cost Information Service to get an idea of how much it would cost to rebuild your home.
Simply measure the internal floor area of your house and make additions for the garage, built-in wardrobes, special finishes e.g. hardwood floors, fences and walls (note storm damage to fences is excluded), disabled ramps and so on. Once you have an estimate of the rebuild cost, make sure you insure your home for at least this amount.
It is important to check with your buildings insurance policy to see how much cover you have as this can vary. You may also need to top up your cover if the value of your home has increased or if the rebuild cost of your home has increased.
What does contents insurance cover?
Contents insurance policies cover the cost of replacing your belongings if they’re damaged or stolen. It typically does not cover the structure of your home, such as walls, floors and ceilings. It protects your personal belongings inside your home, such as furniture, clothes and electrical items.
However, your insurance policy may include certain conditions. You might need extra cover for high-value items like jewellery, art or antiques. Or you might decide to insure expensive individual items through a separate policy. In any case, you need to check your policy documents or check with your insurer to see what’s included in your contents insurance.
How do I work out how much contents insurance I need?
To work out how much contents insurance you need, you need to figure out how much it will cost to replace everything if there was a fire or flood.
People often underestimate how much they own, which can lead to issues when making an insurance claim. For example, one homeowner we worked with had no idea how many valuable items were in their garage until a flood forced them to account for everything.
To avoid this kind of stress, we always recommend maintaining a detailed inventory of your possessions. This inventory can be more than a simple list; including descriptions, estimated values, and even photos can make the process easier if you ever need to file a claim. Not only will it save time, but it will also ensure you are adequately covered, giving you a better idea of the level of insurance claim you might need to make in the future.
How do you calculate how much home insurance you need?
A home insurance policy covers your house and contents in the event of damage or theft. To calculate how much home insurance you need, you need to consider the cost of rebuilding your home from scratch and replacing your contents. Your insurance company will also have a limit on how much they will pay out for rebuilding or contents replacement. You can usually get cover for accidental damage as well, which will also cover things like burst pipes.
Frequently Asked Questions
Do you need extra buildings insurance?
If you’re planning on making any changes or additions to your home, you may need to get extra insurance to cover the construction work. For example if you need specialist materials your insurance provider may not provide cover as standard.
Is my shed covered by buildings insurance?
Many people are unsure if their shed is covered by their buildings insurance. The answer is that it depends on the insurer, as some insurers will also cover sheds while others will not. It’s important to check with your insurer to see if your shed is included in your buildings cover.
How much homeowners insurance do I need?
Homeowners insurance typically covers the dwelling, other structures on the property, personal belongings, loss of use, and liability. The amount of coverage you need depends on the value of your home and possessions, as well as your tolerance for risk. It’s important to have enough coverage to rebuild your home and replace your belongings if they are destroyed or stolen. You should also consider liability coverage in case someone is injured on your property.
How do I make a claim on my home insurance?
To make a claim on your home insurance, you will need to contact your insurance company and provide them with information about the damage.
However, making an insurance claim can be challenging, but PCLA can help streamline the process, making it easier and less time-consuming for you.
Maybe you’re not sure if you’re even covered for the damage. Or you could be worried that your settlement could end up less than you’re entitled to. That’s where we come in.
PCLA are expert loss assessors who specialise in removing the stress from home insurance claims. We will handle everything for you from start to finish so you can focus on what’s important – getting your life back to normal. We have a team of experienced professionals who will work with your insurance company to get you the best possible settlement. Contact us today to get started!
What is accidental damage cover and is it worth it?
Accidental damage cover is an insurance policy that covers damage to your home that is caused by accidents. This can include damage from dropping something on your floor, spilling a drink on your carpet, or breaking a window. Accidental damage cover is usually an add-on to your home insurance policy, and it can be worth it if you are worried about accidentally damaging your home.
What’s the difference between contents and buildings insurance?
The main difference between contents and buildings insurance is that contents insurance covers your belongings whilst buildings insurance covers the structure of your property. Buildings insurance is usually required if you have a mortgage, while contents insurance is optional. However, both types of insurance can give you peace of mind in knowing that your home and belongings are protected in the event of damage or theft.
Do you need to make a claim for damage to your property?
PCLA have a team of insurance professionals who will help you understand the claims procedure so you know what to expect when making a claim. It may be difficult to make a claim for certain types of losses. But our expert loss assessors will be able to explain what you can claim for, and ensure you receive your full entitlement.
It’s always worth hiring a professional to manage your insurance claim. Not everyone is able to spot or find all of the property damage. Even the loss adjuster. That’s why with PCLA working for you, we can make sure your claim is full and complete.
We’re here to help you get back to normal after suffering damage to your property.
Remember:
- PCLA are Building Surveyors and Certified Insurance Practitioners who will assess the damage to your property and draw up a schedule of loss.
- We work on your behalf, so that nothing is forgotten or overlooked.
- With PCLA working for you, we will ensure you get a fair settlement.
- As an independent company with over 20 years experience, we know how to make sure our clients get their full entitlement.
- Remember, we work for you.
Call 028 9581 5318 today and ask PCLA to manage your insurance claim.
PCLA, we take the stress out of insurance claims.
