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How to get the right home insurance for you
When it comes to home insurance, most people are just concerned with getting the cheapest deal on the market. But going for cost over quality can leave you in hot water when it comes to making a claim. When taking out home cover, it pays to take a closer look at the small print before signing on the dotted line.
- Check your single limit
The single limit is the maximum that the insurer will agree to pay out for one item. This is generally between £1,000 and £1,500, but if you own particularly valuable technology or jewellery then it’s worth applying for an increase. Items valued over this limit may need to be named separately on your policy, or you may even need to take out a separate policy to cover them. If you fail to do so then the insurer is unlikely to pay up the full value, even if you have kept an inventory and receipts.
- Do you need accidental damage?
Many home insurance policies will only cover break-in damage, or damage caused by ‘acts of God’ such as flooding. If you think that you might need accidental damage cover (for example, if you have particularly destructive children or have a DIY enthusiast living in your house) then you may need to take it out as an optional extra. Some insurers will charge over the odds for this, while some will include it automatically, so take a look around before you commit yourself. Large-scale insurers, such as ASDA Finance or Direct Line, are generally more likely to include a bigger range of cover as standard.
- Conduct an annual inventory
It’s important to reassess the value of your home and its contents regularly. A recent survey by the British Insurance Brokers’ Association concluded that 70 per cent of British households are under-insured, because most people fail to add new gadgets, designer clothes and home entertainment systems to their policy. These items would not be insured should your home suffer accidental or purposeful damage.
- Keep your insurer informed
Failing to keep your insurer up to date with relevant information can invalidate or reduce the value of your policy. If you are going away for a long period of time then it’s important to inform your home insurance company. Similarly, if your area becomes classified as a flood zone then you need to let them know.
- Know what is covered and what is not
Choosing the level of cover you need and what it applies to is a good way to avoid nasty surprises if you need to make a claim. The best way to do this is to shop around on the websites of insurers like ASDA Finance, Endsleigh or Elephant to see what types of cover are on offer. For example, some policies will offer protection for your children’s possessions when they are at university, or even limited cover of your valuables when you travel. Remember that home insurance may not cover things like tools, money and credit cards as standard.
