Everything You Need to Know About Home Insurance

In the process of purchasing a property? Firstly, congratulations! Becoming a homeowner is a huge achievement. From poring over paint colours to selecting soft furnishings that transform your house into a home, there’s a great deal to look forward to. It’s also important to remember that it’s a huge investment and there are many costs associated with this process. For this reason, it’s vital that you ensure your home is adequately insured and protected by taking out home insurance. Home insurance is made up of buildings insurance and contents insurance. You can buy these policies separately or you can combine the two. Mortgage lenders will usually insist that you have a buildings insurance policy in place to protect the property that you are buying. 

Still unsure about the difference between types of insurance and what would be best for you? Our team at Planet Mortgages have put together some top tips to help...

Buildings insurance is a policy that is designed to protect the structure of a property and all of the permanent fixtures and fittings associated with that building. If the structure of your property suffered unexpected damage by an event included in your policy, the cost of your repair or rebuild will be covered. It’s important to thoroughly check your policy and make sure that you’re well aware of what is included. Typically, you may find that you’re protected against fire, flooding, storms, falling trees and vandalism. But this is likely to differ depending on your insurer. In some instances, insurers may give you the option to add additional occurrences to your policy for extra protection. Once you exchange on the property, you must have buildings insurance in place as from this moment onwards you will be financially responsible for the property. This means that you will be liable for any losses if anything unexpected happens. If you have a mortgage, this is likely to be a condition of your mortgage agreement. 

Contents insurance covers the possessions inside of your home. In a similar way to building insurance, it’s crucial that you thoroughly read through your policy agreement and check what is included. Generally, contents insurance might cover items like furniture, clothing, carpets and household appliances. Your insurer will most likely give you the option to specify cover for high-value items. In some cases, you may have to take out specialist insurance for some items that are not covered under a standard contents insurance policy. Content insurance is designed to protect your possessions from fire, floods and vandalism. We highly recommend being clear on your provider’s definition of ‘contents’ and having a firm understanding of what is and isn’t included. 

Landlord insurance is a type of home insurance that is designed for rental properties. Depending on your insurer, you’ll find that policies can vary and have different levels of cover. You must thoroughly check your policy and make yourself aware of exactly what is and isn’t covered. You might find that your policy covers loss of rent, damage to the property or contents in the property, and claims made against the landlord. You should decide what you’d like your policy to cover and check what levels of cover can be incorporated into the policy. 

Here at Planet Mortgages, our experienced team of mortgage brokers in Essex will be able to find you an out of this world mortgage and help you source a range of insurance quotes. Get in touch with our team today and let us help you secure your dream home!