Homeowner insurance is a combination of both buildings insurance & contents insurance. If you have a mortgage by law you will have to take out a buildings policy which protects the bank & you for damage that occurs to the property. Content insurance is not compulsory. If there is any damage to your possessions then you are solely responsible for the cost of replacement. If this is a large item such as white goods, then this will be expensive.
Homeowner insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss (buildings and/or contents). This is valuable as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, guards against a large, possibly devastating loss for the insured.
You can decrease the value of your premiums by taking a few simple steps:
– Fit secure locks to doors & windows. It is good practice to fit British Standard approved Locks. Fit key operated locks to accusable windows & five-lever mortise dead locks to all external doors (British Standard BS3621).
– Consider fitting a door chain & spy hole. Using laminated glass & fitting letterbox cages. Using external security such as motion sensitive security lights.
It should be noted that most domestic policies do not cover you if your home is left unoccupied for more than 30 days. To combat this have somebody stay over for a single night, this will reset the clock on your homeowner insurance policy
If I lie on my homeowner insurance application to keep my premiums down? Lying on the proposal form invalidates the contract between the insurer & the insured. It is called duty of disclosure.
What happens if I underestimate the sum insured? A clause in your policy called average would be invoked. This means that you are under insured by the difference.
Who Governs Insurance brokers? In the UK, insurance providers are regulated by the Financial Service Authority (FSA).
Can I get help calculating my valuation? Yes, visit the Association of British Insurers (ABI) website. They have a free calculator that you can use 6 times a year for free (Buildings Only).