subject: Anyone In Their Right Mind Wouldn't Dare To Be Without Home Building Insurance! [print this page] Many people who have a valuable collection of jewellery choose to insure it against loss and damage and why not, considering it would cost a considerable amount of money to replace if it was ever stolen.
In the vast majority of cases however, a person's jewellery is worth nowhere near as much as their home and yet hundreds of thousands of home owners in the UK fail to take out any cover for their homes.
Generally speaking, home building insurance usually includes contents insurance, although the two are essentially different types of cover altogether. The reason why the two usually go hand in hand is because if you insure the contents of your home with the same company you use for insuring your home, you tend to receive a huge discount. This is also why so many people use one provider for all their needs, including things like car insurance.
Apart from people who rent accommodation, home insurance is something nobody should be without, or at least no sane person. Unlike contents insurance, building insurance covers the building itself rather than the contents. It also covers any outbuilding you may have on the property.
This includes your garage, any garden sheds and even greenhouses if you have any. Your perimeter wall or fence is also fully covered by this type of insurance. Practically everything which is considered to be irremovable will be covered, including roof tiles, flooring, fitted kitchens, built-in cupboards etc.
Many home owners try to over-insure their homes in the hope that they'll receive a larger payout if they ever need to claim. Unfortunately, insurance companies have been around for a very long time already, so it's highly unlikely that they'll fall for such an old trick. Instead, the more you insure your home for, the higher your premiums will be, but if your home is ever destroyed, the insurance company will only pay out what they perceive to be the real value. This figure is calculated by means of special formulas, rather than by going on what you tell them.
Another common mistake home owners make is to under-insure their homes in order to pay lower premiums. This approach can prove to be devastating if your home ever gets destroyed, in that the amount you receive from your insurance company won't be enough for you to rebuild your home from scratch. Basically, before you take out insurance you should ideally get someone in to evaluate your home, because the value you declare to the insurance company needs to be as accurate as possible.
One other thing to remember is that there's a difference between the value insurance companies use and the actual market value of a property. Insurance providers look at how much it will cost to rebuild your home from scratch, bearing in mind that even if your home burns down, you'll still have the land it stood on. This is why the insurance value is almost always less than the market value.
If you don't know what you're doing, or if you rush blindly into accepting the first deal you get, home building insurance can cost a lot of money. On the other hand, if you take your time and if you're willing to shop around, affordable home building insurance cover is obtainable, no matter what you may have heard elsewhere.
by: Tom Jones
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