You’ve saved for what felt like forever, found the perfect property, got the mortgage agreed and have a completion date decided. Now is the perfect time to start thinking about insuring your new home. Here's what you need to know:
There are two parts to home insurance - buildings and contents. As a general guide, anything you could remove from the house without using power tools (down to the carpets and curtains) comes under contents, and everything else would be covered by your buildings insurance. If the structure of your home were to be damaged in a fire or flood, for example, you could call upon your buildings insurance to cover the cost of repairs. Any belongings damaged in an event such as this could be claimed for too, on your contents insurance.
Buildings insurance is a must-have, as it will be stipulated in your mortgage contract. Contents insurance is optional, but it's always a good idea to get cover.
It used to be the case that you had to buy buildings cover from your mortgage provider, but this is no longer true. You can get both buildings and contents insurance from any company you like. Don't just go with the first one you see, either. Shopping around for your home insurance cover could save you up to £200 per year! If you need a hand deciding on the best cover, our experts can help - get in touch.
Don't leave buying your home insurance until the last minute - at the point you exchange contracts with the seller, you're legally obliged to buy buildings insurance - it's best to have it in place beforehand.
Even with contents insurance, you will want to make sure you have your policy in place before you start moving, as items could be damaged in transit.
Most contents policies will cover your belongings against damage whilst in transit, but only if you use a professional removals company. Alternatively, the removal firm itself may offer 'goods in transit' insurance.
When buying buildings cover, you'll be asked to provide the cost to rebuild your home. This is the cost of building it from scratch if it were completely demolished.
Remember: the rebuild figure and the price you paid for the property are not the same. to get a rough idea of what your property might cost to rebuild, you can use this calculator from the Association of British Insurers.
When buying contents insurance, it's simply a matter of estimating the value of each of your possessions (the cost of replacing each item rather than what it is currently worth) and adding it all up to reach a total. The average value of a household's contents is around £40,000. Certain high-value items, such as jewellery or computer equipment may need to be identified specifically when you apply.
The price of insuring your contents will depend largely on the total you're insuring and the postcode of your new home. Any extras you may decide to add to your policy (such as accidental damage cover) will also incur a cost. Like most other forms of insurance, you can earn a no claims discount by being covered without claiming. If you've had contents insurance before, check to see if you're eligible for a discount.
When it comes to buildings insurance, the price will depend mainly on your property's rebuild value and whether you live in an area prone to flooding. The higher the risk to the insurer, the higher the premium will be.
For free, expert advice on insuring your home, book a consultation with one of our team.