Insurance policies are offered for almost everything of value.
Homeowners,
renters and
companies all require different coverage and there are
different policies and rates available for everyone. You can get insurance for businesses, homes, health, travel, cars, and even life assurance.
Home insurance is split into two categories: Building Insurance and Contents Insurance. Contents Insurance covers the possessions stored inside the building against certain things such as theft and damage, while Building Insurance is an insurance against the physical bricks and mortar holding your building together – so if there was an earthquake, or a severe storm causing damage to your home, it would fall under Building Insurance.
There are two different types of content insurance: ‘
Like for Like’ and ‘
Old for New’.
‘
Like for Like’ insurance will pay out a monetary amount equivalent to the value of the item just before it was damaged. For example, an antique piece of furniture might be worth more for its age than its functional value. In this case, ‘Like for Like’ would be better for the individual.
‘
Old for New’ insurance will pay out a monetary amount equivalent to the cost of buying a new version of the item. For example, if a television had a specific set of features (wide screen, surround sound etc) the insurance would allow the individual to replace the item with a new one of similar features.
When getting Home Contents Insurance it is important to
check the policy. Make sure it covers items stored in your garage and garden, and any other places you might think class as your Home but aren’t directly inside your House.
You may be required to get Building Insurance if you plan on getting a secured loan against the value of your home. This is to decrease the amount of risk your bank undertakes by giving you the loan, as they will not lose out if a disaster damages your property.
You may get better information and interest rates from an
insurance specialist, rather than going to a bank for home insurance. Your insurance will be influenced by the area in which you live, carrying greater costs for high risk areas. It is also possible to accumulate no claims bonuses on home insurance, up to 50%.
Insurance is also available for specialist groups such as Students, who might only need insurance for a Computer or a Bike, while the rest of their possessions are at home covered by their family’s home insurance.
