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Home insurance

The vast majority of people who own their house will have some form of Home Insurance to protect themselves and their property in case of accident. Home Insurance primarily protects the policyholder's residence, in the case of damage resulting from fire for instance, and the policyholder themselves from liability for accidents that happen inside the house.

Accidents that are not covered by Home Insurance are those resulting from earthquakes, 'Acts of God', and war or nuclear explosions. It is becoming increasingly common for companies to refuse to cover houses that are at the risk of flooding, particularly after the recent freak weather conditions of the past few years.

Home Insurance premiums will be affected by many different factors, such as whether a burglar alarm is installed at the house. And additions such as water sprinklers and fire alarms will also considerably reduce the amount charged by the provider. If a house is owned outright there is no legal obligation to buy a policy, but mortgage providers will insist on sufficient cover being purchased to protect their investment. Policyholders often find that premiums can be reduced by shopping around and comparing the prices on offer from different providers. Many people buy their policies from the same company who provides their mortgage and this can result in some consumers not obtaining the most competitive policy.

It is also increasingly the case that customers will choose to cover items of great value through their policies. Although automatically protected from damage while in the house, these items have to be listed separately and included as 'possessions away from the house'. This cover can stretch to items that are taken abroad on holiday, and if a customer possesses this value-added extra it can often reduce the price paid for travel cover when on holiday.




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