There are 2 types of contents insurance policy…
1. Bedroom rated
2. Sum insured
Sum insured cover is calculated by working out the cost of rebuilding your home from scratch.
This amount should include professional fees and is NOT the same as your homes market value. The cost of building increases year on year so the rebuild price will increase so you may choose to index link your policy to take this into account.
Bedroom rated cover estimates the cost of rebuilding your home based on the number of bedrooms you have.
These types of policy protect you from under-insuring (as calculating a sum insured policy can be quite tricky) and provide very high sum-insured cover.
Bedroom rated cover means you don’t have to worry about calculating the rebuild cost of your home. It’s important to bear in mind though that you could end up over-insuring yourself and paying for cover that you might not need but many see that as worthwhile compared to the risk of under insuring.
Accidental Damage: This happens when there’s a one off unintentional incident that damages the structure of your property. For example, a ball through your window. Cover for accidental damage is usually bought as an add-on to a policy as home insurers provide very limited protection as standard.
Usual exclusions: Typical exclusions include…
- General wear and tear
- Damage caused by failing to upkeep your property & letting it fall into neglect
- Bad workmanship
- Storm damage to gates, fences and plants
- Frost damage to outside pipes and brickwork
- Damage caused by insects, birds or other pests
Occupation: It is also useful to know that most insurance providers will only provide cover on the agreement that your phone will not be unoccupied for more than 30 consecutive days. If you intend to do this you should update your provider.
Tenants: Tenants do not need to purchase Buildings Insurance as that is the responsibility of the landlord however a Tenant should arrange their own Contents Insurance.