Property insurance protects you against damage to the structure of your property caused by fire, bad weather, man-made disasters (riots, explosions and vandalism); damage caused by burglary or attempted burglary. It includes the permanent fixtures and fittings of your home including the walls, floors, roof, ceilings, doors, windows, fitted kitchens, built in cupboards & bathroom suites.
Most property insurance will also cover certain outdoor structures such as sheds, garages, gazebos and greenhouses. However there are exceptions, some homeowner insurance companies do not cover fences, gates, boundary walls & mains supply pipes. Always carefully read your small print.
If you are in the process of buying a new home, it is worth considering that once you exchange contracts on a property you are legally responsible for it. It is hence advised that you should have property insurance on the day of the contract exchange. Having property insurance is often part of the conditions to getting a mortgage, as the bank who lends you the money to buy your home has an interest in its future.
Most mortgage companies will offer you their own property insurance cover when you take out a mortgage; you are however under no obligation to purchase your insurance from them. It is worth doing some research to make sure that you get the best value whilst making sure you are properly protected. A good homeowners insurance package can get you covered & most will even cover your things while in transit to your new home.
Buildings insurance is principally to cover the cost of rebuilding your home should the worst happen, a& as such the amount insured often differs from the market value of your property. The amount of cover building to building varies & depends largely on your homes size and construction type. If your home is older or listed it is often worth getting specialist advice on its value as many properties in the UK are currently underinsured and would leave their owners open to massive rebuild costs should the worst happen
It is worth remembering that you are responsible for providing your insurance company with an accurate valuation known as the sum insured. If you make any alterations to your home such as adding an extension you should inform your insurance company. This will enable them to update your homeowner insurance policy & will make sure you are fully protected in the event that anything happens.
If however you don’t make any structural changes to your property then you do not need to make any changes to your sum insured. If you change your policy or insurance company it is then worth updating your valuation as the cost for materials & other building cost may have risen.
If your policy is an index linked variety your insurance company will take into account inflation changes & the rising or falling value of your home. This means there is no need to resubmit your valuation.
Most insurance policies will cover the cost of alternative accommodation (this will have an upper limit so check your fine print), if you have to leave your home due to damage or when repairs are being carried out. In addition, It is worth considering getting family legal protection to cover you should someone get injured or die whilst at your home.