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How to Choose the Best Home Insurance Policy

How to Choose the Best Home Insurance Policy

There are so many home insurance providers available on the market today; it can be incredibly overwhelming to know which one is best suited for your needs.

The guide below shows our top advice on how to choose the best home insurance policy for you. 

What you need to know about choosing the best home insurance policy

Choosing the best home insurance policy will involve a lot of consideration in order to make the right decision for your needs. You’ll need to take a lot of different factors into account to determine how much you’re willing to pay, what exactly you want to be covered for, plus any other extra add-ons you might require. 

Compare different providers and their policies

The first thing you need to take into consideration when choosing the best home insurance policy is that you should look at many different providers. 

While most home insurance providers may claim that they offer very similar policies to one another, there could be hidden extra fees or things that you’re not actually covered for. 

It’s imperative to carry out the necessary research and ensure you compare as many providers as you deem necessary in order to obtain the best home insurance policy for you.

Know exactly what’s covered

It might sound like an obvious statement to make, but many people aren’t 100% sure of what exactly their policy covers them for. Make sure you thoroughly check what your home insurance policy covers and if you require extra cover for personal belongings for example, you can easily purchase add-ons.

Buildings insurance

Buildings insurance is a legal requirement for homeowners; it will provide you with financial protection should something happen to the structure of your home. 

When choosing this part of your home insurance policy, you must determine the estimated cost to rebuild your home, including the cost of bricks and mortar, in order to determine how much you should pay for your buildings insurance. 

Contents insurance 

The price of contents insurance is based upon the estimated valuation of the belongings in your home.

The easiest and most effective way to get a quote for contents insurance is to go through each room in your home and work out the rough cost of everything in there. 

Don’t be afraid to ask for clarification of your policy if you’re unsure

One mistake that many people make when obtaining a home insurance policy is that they take what they see at face value when it comes to their policy inclusions. 

A significant mistake that numerous homeowners make is presuming that something is included in their home insurance policy, only to find out that they’re not covered in the event they need to make a claim.

The simple way to combat this is just to ask for clarification from your home insurance provider on exactly what you’re covered for. 

There are numerous things that you might presume you’ll be covered for such as emergency services’ damage (in the event they need to break into your home in an emergency). You may also presume you’re covered for water leaks (you might have to purchase this as an extra add-on on your policy) and legal cover (which will offer you legal advice on a range of issues). 

It’s imperative therefore, that you should always make sure you’re completely clear on what your home insurance policy covers. 

Reducing the cost of your home insurance policy

Below you can find some top tips on reducing the cost of your home insurance policy.

Loyalty doesn’t always pay

While in many industries, it’s a good idea to stay with one company as you can often receive loyalty bonuses, in most cases with home insurance, you won’t see the same benefits. 

It’s a good idea to shop around for cover when your policy is due for renewal to see if another provider can offer you a better home insurance policy.

Reduce the risk of theft

Another way to reduce the cost of your home insurance policy is by trying to reduce the risk of theft.

This includes simple tasks such as ensuring all your windows and doors are always locked and secure, as well as considering investing in a security alarm system.

Earn a discount on your policy

You can often earn a discount on your policy by taking out both buildings and contents insurance with the same provider. 

You can also negotiate a lower policy premium if you offer to pay a higher voluntary excess; it’s important to consider whether you’ll be able to cover this excess fee should you need to make a claim.

Calculate as accurately as possible

When determining a policy price for your contents insurance, it’s imperative to try and evaluate the cost of your belongings as accurately as possible; you don’t want to be paying a much higher premium just because you’ve miscalculated the cost of your belongings. 

Try and pay your policy annually

Another way to try and reduce the cost of your home insurance policy is by opting to pay for your policy annually. 

Oftentimes, when you pay for your policy in monthly instalments, you’ll be required to pay an interest charge as well. In order to combat this, you should try and pay for your home insurance policy in one annual lump sum.

Conclusion – how to choose the best home insurance policy 

Choosing the best home insurance policy can be much easier than you might think, providing that you take the necessary steps.

Make sure you conduct thorough research of the best providers, make sure you’re aware of exactly what your policy covers and don’t be afraid to ask for clarification if you’re unsure. 

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