We wrote recently about the increasing costs of home insurance and ways you can look to manage your premiums. In light of this we thought we would also take a look at how to shop for home insurance. Particularly, what to consider when shopping for home insurance and why a broker may be well placed to help find the best deal for you.
What should you consider when shopping for home insurance?
Given all of the jargon and questions, as well as numerous ways to shop (direct with an insurer, through an insurance comparison site or through a broker) buying home insurance, like any insurance policy, can seem like a difficult task.
So, we have put together a list of things to keep in mind when you do shop for home insurance. These will apply however you shop for your home insurance.
How much home insurance cover do you need?
Don’t take out more cover than you need. Or not enough cover for your needs. Make sure you understand what key policy terms mean so that you don’t over or under insure.
For example, buildings cover refers to the amount required to rebuild your property. Not the market value of your property. And many policies will include a single item limit amongst the overall contents cover. Keep in mind that this must be high enough to cover your most expensive item.
Calculate the value of your contents
The value of the contents in your home can quickly add up. And may be higher than you expect. Working out how much you would need to rebuild your property is an easier calculation than how much you would need to cover all of your contents and replace them if the worst should happen. One way to do this is to use a home insurance contents calculator. Go around your house room by room adding up the values to give you the best chance of taking out the right level of cover.
Consider high value items separately
High value items should be considered separately to your other belongings. Some insurers may not insure certain types of items, or items over a certain value. You’ll also want to check if any single item policy limits listed on the policy are high enough to cover your most expensive item.
Some high value items may require a valuation before they can be insured. And it may be necessary to itemise these on your home insurance policy. So, if you do have any high value items it is probably worth discussing these with an insurer before purchasing a policy.
In some cases, a high net worth insurance policy may be more suited to your needs if you do have high value items.
Does home insurance cover for your possessions out of the home?
If you regularly take high value items out of the home (think laptops, watches and jewellery for example) then you may want to extend your cover to include this.
Should you insure against accidental damage?
Some policies don’t provide accidental damage cover as standard, so you’ll want to consider if this is something you want to pay extra for. It can cover things such as a glass of wine tipped on a carpet, or accidental damage you or a visitor cause to your building or kitchen/bathroom fittings.
Does home insurance cover gardens?
Many people overlook the value of the possession that they have in their garden. Garden furniture, play equipment and garden tools can all quickly add up in value. So, it’s a good idea to check if a policy offers cover for these types of thing and if the cover is sufficient.
How to set your excess at the right level
A higher excess will typically reduce your premium. But remember you will have to pay the excess if you do need to claim. Therefore, setting it too high could be detrimental.
How can a broker help you with your home insurance?
Biba describe the role of a broker as helping customers ‘find suitable cost-effective insurance protection’
Brokers are regulated by the FCA and work on behalf of the client. Not the insurer.
Brokers, unlike many insurers, are able to offer advice to those that they are working on behalf of. As a customer, when you work with a broker you will be able to provide the details relevant to your home which your broker can help translate into your insurance needs. Your broker can then match these needs with the best value cover as they typically have access to wide a range of insurers and insurance products.
During this process a broker will also be able to advise on the type of insurance protection you will want to consider. Something which you will not get if you go direct or through an insurance comparison site. In these cases, your purchase decisions are based solely on your own knowledge and research. Not that of insurance experts.
And this is why a broker is well position to help you get the best home insurance for your needs.
- They are experts in insurance
- They can provide advice
- They can access a wide range of insurers and insurance products
- They can provide information on risk management
At Anthony Jones you can complete our home insurance quote form to get your quote. Or you can get in touch with us to discuss your requirements and our expert teams will be more than happy to help. Email us at personal@anthonyjones.com or call us on 020 8290 7776.
