Authorised and Regulated by the Financial Services Authority.
20 million households in the UK were covered for home insurance last year spending £6 billion in premium. Less than £2 billion of that was paid out in claims to policy holders, including claims for domestic break-ins. With premiums averaging £357 for a years cover, it is a small price to pay for security and investments in your home and belongings.
Home insurance protects your building and your contents from fire, theft, flood, subsidence and legal liability. Building cover includes the structure, fixtures and fittings of the home; anything that cannot be removed from the home. While contents cover is for those possessions and belongings that would be removed from the home if relocating, for example camera, laptop or jewellery etc.
Premiums are calculated on the basis of how much it would cost to rebuild the house or replace the contents. Depreciation value due to wear and tear is taken into account when calculating the contents value and home value can change with development and extensions of the building etc. Other factors for affecting premium can be the location of the home in regards to whether the area is identified for subsidence or whether that area has attracted more claims than others. Also the customers' claims history may alter the charge.
Policyholders can reduce the premium they are paying for their home insurance by making a few simple changes. Installation of burglar alarms and window locks help prevent burglary and damage, therefore reduces the risk of a claim being made and in turn a decrease in the premium. Other factors such as joining Neighbourhood Watch and having a higher excess on your policy may also shrink your premium.
Some companies may offer home insurance policies with added unnecessary cover that may also alter the premium. For example a policy may include all-risks cover, which is coverage for items such as a digital camera while on holidays. But you may already have a travel insurance policy that includes that cover. By excluded certain aspects of your home insurance, you may be saving yourself money.
Home Insurance