Author Topic: Why Home Insurance is essential  (Read 3456 times)

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The Prophet

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Why Home Insurance is essential
« on: February 27, 2012, 09:44:04 am »
There are two types of home insurance buildings and contents.
They can be taken out separately but if you need both it is better to take out a joint policy to take advantage of any discounts offered by providers.
Costs vary depending on where you live and the type of property you live in. According to the Home Office the average annual cost for a buildings policy is £171 and contents is £140.

BUILDINGS INSURANCE
If you are living in rented accommodation or in a leasehold property you do not need buildings Insurance.  The Freeholder of the property will provide this.
In all other cases you should have Buildings Insurance to cover repairs or rebuilding costs should the worse happen.
If you have a mortgage on your home your lender will require building insurance.
The ABI say there are currently around 16.6 million buildings policies, covering only 64% of households in the UK.

CONTENTS INSURANCE
This provides insurance cover for all your personal belongings. The extent of the cover provided can vary considerably depending on the provider and cost of the policy.
Mortgage lenders do not require contents insurance, but skipping on contents insurance is foolish.
Even so, only 76% of households have contents insurance, equating to 19.7 million households according to ABI figures.

There is a 10% chance (1 in 10) of needing to make a claim for example after being burgled or suffering accidental damage.
Across both types of insurance there were 2.1 million claims with an average claim of £1,500 in the UK in 2011.

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