| Home insurance
For a more detailed look at home
insurance visit the house insurance 365 consumer information
site. find
out more
The amount you pay for home insurance is dependent on a number
of factors. These factors and how they apply to your circumstances
are used to assess your risk to the insurance company. For
instance if you live in a high crime area then your more likely
to be broken into, meaning you are a higher risk to the insurer
which means higher premiums.
There are two kinds of home insurance polices available.
- Buildings insurance: This level of cover is
compulsory if you own your own home. It covers the structure
of your home (including fixtures & fittings) against
damage caused by fire, floods, subsidence
and other natural disasters.
- Contents insurance: This covers you for theft,
loss or damage to the contents and possessions in your home.
Firstly, as with most other types of insurance
policy, you need to decide on the level of cover you require.
How much do you want to insure your property for? This amount
makes quite a large difference to the size of your premiums,
as this quantifies the insurer’s risk.
The amount of extra cover you decide on will
also effect your premium. Adding 'accidental damage' onto
your policy could come in useful if you damage something of
value but bear in mind that an extra premium will be payable.
The other main level of extra cover offered is known as 'all
risks'. This is cover for any household items you regularly
take out of the house such as a camera, and again an extra
premium is payable.
The insurance company will use the condition,
location and security of the home as the main considerations
when calculating their quotes. Which means you often can't
reduce the risk to the insurer. For example, homes in a high
risk flood area or miles away from the nearest police or fire
station will be more expensive to insure. However there are
other ways in which you can bring down the cost of your premium.
Ensuring you have extensive security systems such as approved
locks and burglar alarms will often help reduce your premiums,
as will installing fire doors and fire alarms.
The only realistic way to get the best quote
is to shop around. The companies that promise to do the searching
for you aren't always the cheapest so make sure you get several
quotes. That's why we hope the home insurance company directory
can help you find and compare home
insurance quote 's.
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