The main reason that people invest in home insurance is to keep their property covered if it is seriously damaged. This damage can be from anything, as long as it wasn’t the homeowner’s fault, such as natural disaster damage. Our homes being victims of a natural disaster can heavily affect our lives, so it’s important to ensure that we are protected from any such occurrences.
Recovering from a seriously damaged property isn’t the only reason why having home insurance is important. There are other reasons why you should have home insurance, as it can also protect you from theft. Therefore, if you live in a place that doesn’t experience many natural disasters or potential property damage, home insurance is still important to you.
This article will explore why home insurance matters even if your home hasn’t been heavily damaged. We will take a look at the different types of home insurance and what they could mean to you.
Why Is It Important To Have Home Insurance?
Home insurance protects you from any theft of your home belongings and any damages, including burst pipes, subsidence and structural damage. This type of insurance falls into three categories; standard, building and contents.
- Standard Policy – This covers various types of damage caused by natural causes like fire, wind, hail, explosions, smoke and more. It can also cover criminal activity, such as vandalism.
- Building Insurance – Floors, walls, fixtures and fittings are all covered by building insurance. This is especially useful for pipe leaks.
- Contents Insurance – This covers all the items that are inside the home, including laptops, jewellery and artwork. Only some policies include mobile phones and bicycles. Having this insurance in place will help replace stolen items or the market value of them.
It’s important to check your home insurance policies to understand what you are and aren’t covered for. This can help you know what your rights and responsibilities are.
Home Insurance Coverage
As mentioned, damage to your structure is not the only reason why you need home insurance. Let’s take a look at some of the other reasons why home insurance should matter to you.
Theft Coverage
Home insurance will cover you if you are a victim of theft. Thieves can steal anything from the home, from furniture to electronics to appliances. No matter what is stolen, home insurance gives you the best possibility of regaining your stolen items.
Liability Protection
Injuries can occur in the home at any time. Home insurance can help you cover unaffordable medical expenses if someone is injured inside your home. It can also help you to afford the legal fees that might come with it.
Additional Living Expenses
If your home is no longer habitable for whatever reason, having home insurance in place can help you temporarily locate and cover any additional expenses. You can also apply for a DRO (debt relief order) to help cover these expenses that could potentially put you in debt.
Peace of Mind
Knowing that you are protected at all times can take away the stress of something potentially bad happening to your home. This is good for our health and wellbeing.
Types of Home Insurance
Mortgage Holder
Mortgage holders are usually encouraged by lenders to take out building insurance. The mortgage funds are unlikely to be released unless the building’s cover is in place. This is because the provider of the mortgage will have a stake in your home.
Property Owner
Building insurance should still be considered if you are a property owner to protect you against any potential repair costs. If you are the leaseholder, you should also still make sure that you have the correct contents insurance so that your belongings are protected.
Property Renter
If you are a tenant at a property, your landlord should have the building insurance covered, as well as landlord insurance. However, it would be your responsibility to get contents insurance sorted, as it will be mostly your items that are inside the property.
Student
In most cases, students who live away from home will use their parents’ home contents insurance policy to cover their possessions at their accommodation. Alternatively, there should already be building insurance covered by the property owner.
Insurance for Different Home Types
Expensive Homes
Homes worth a lot of money or having a large number of bedrooms might require specialist building insurance to ensure that they’re fully covered. You would need this cover if:
- Your home is worth more than £1 million
- Has more than six bedrooms
Non-Standard Properties
Standard construction will be fine with the usual home insurance plans. However, you might need a specialist home insurance policy if your property is non-standard. These types of properties include:
- Thatched houses
- Listed buildings
- Flat roofed houses
Holiday Homes
Standard policies usually don’t cover holiday homes, as they are usually left empty for more than 30 days at a time. You will need to locate a specific type of home insurance if you want to keep your holiday home protected. The majority of holiday home insurance policies will also cover homes overseas.