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What is home insurance?

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By : kath wong    99 or more times read
Home insurance is the type of property insurance that covers private homes. It is an insurance policy that protects the individual and their home which can include losses and damages occurring to the house and its contents. Furthermore, personal possessions and public liability for accidents that may happen at home are also covered.

Insurers will need a lot of information about the property including the value, construction and materials for the building, and different insurers might not insure unusual properties if they see them to be too high a risk. This could include thatched cottages, holiday homes and properties at risk of flooding and subsidence.

The insurance policy itself is a contract which states what will and will not be covered in the event of a claim. The policy holder will pay a premium to the insurance company which depends on the amount of risk the property is seen to pose.

Buildings Insurance
Buildings Insurance is very important and often essential when applying for a mortgage, which can be covered with home insurance and landlord insurance depending on the usage of the property. If the property was to burn down, buildings insurance would pay to repair or rebuild the property. Buildings insurance also includes permanent fixtures and fittings, for example baths, toilets and fitted kitchens. It can cover against damages caused by events beyond your control. These include flood, fire, subsidence, vandalism and water leakages. The policy may also provide alternative accommodation should the property become uninhabitable.

For homeowners and landlords, buildings insurance is crucial; however, for tenants, it is usually covered by the landlords and only contents insurance is required.

Contents Insurance
Contents insurance covers non-fixture items (e.g. furniture, appliances, electronic goods and clothing) of the home against all standard perils including fire, flood and theft. It can also cover items and personal possession that are used outside of the home such as mobile phones, watches and bicycles.

Contents insurance is available for all homeowners, tenants and landlords. Policies are advisable for homeowners and tenants while landlord contents insurance can be limited if the property is let unfurnished or part furnished.

It has been reported that one in three people in the UK will get burgled at some point in their lives yet a quarter of households are not protected by any form of home insurance. This could cost them an enormous amount of money should any accident happens.

Therefore, homeowners, tenants and landlords are highly recommended to attain buildings and contents insurance to protect themselves and their property.
For more information on various cheap landlord insurance and home insurance, please visit Discount Landlord Insurance.

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