It’s extremely important to ensure you have home insurance in place. This usually would also include contents insurance. The simplest purpose of having your Home Building and Contents insured is so that should something unforeseen happen, you have the relevant cover in place to put you back in the same position you were in prior to the loss.
When your home insurance premium is calculated, there are a wide variety of risk factors considered. These are in addition to an even wider range of products with extensive optional extras to choose from. Understanding how a premium is calculated and the considerations taken by the insurer can help you make an informed decision. And remember, at Premier Insurances, we’re here for all your insurance needs. We aim to help you to find the right policy, at the right price to suit your home and circumstances.
Is the market value of my home the same as the rebuilding cost?
This is a common misconception. The market value of your home is the valuation that it would be given should you be going to sell it. Your home insurance premium is based on the rebuilding cost. This is the total cost it would take to rebuild your home if it were completely destroyed in an incident. This cost includes factors such as materials, time and labour, builders, architect and solicitors should you need them. It also takes into account the age of the property and any unique features it may have. This calculator from the Society of Chartered Surveys can give you an indication of the rebuilding cost of your house.
How much should I insure the contents of my home for?
While buildings insurance will cover you for the loss or damage of the property itself, it’s important to also include insurance for the contents of your home with your home insurance. This means creating a list of the personal belongings which you want to protect and estimate the market value of these items. At the end of the day, the more valuable the items you own are, the more likely you may be to want to replace them if they are damaged or stolen, and this will cost more. The quantity and age of the items you may wish to replace will also play a factor in the cost. An experienced financial broker can guide you through the various ways that contents insurance is calculated.
How can I lower the cost of my home and contents insurance?
With the increasing cost of living, this is a question we are being asked frequently. There are a number of risk factors, e.g., your address and age which impact your insurance. These obviously can’t change. But there are a range of ways you can help to reduce the cost by reducing the level of risk in your home. These include installing a home alarm system, which if approved, can get you a discount on your premium. Increasing the number of smoke and carbon monoxide alarms can also have an impact. Window and door locks that meet BS3621 (with the British Standards Institution’s kite mark), can also improve your home insurance premiums. Changing your excess may also be another option. You do need to ensure you can cover the excess with other funds should the need arise.
All in all, there’s quite a lot to consider when either taking out home and contents insurance or if you’re reviewing your current policy at renewal time. That’s where we can help. Just get in touch for expert knowledge with guidance on how to buy flexible cover to suit your needs.