Home and
Contents Insurance

Home and contents insurance are probably the most important insurance policies we will ever purchase, and although practically no home owner actually understands these policies, we rarely spend much time reading them and almost never seek professional, independent advice when choosing them. Understanding home and contents insurance should be one of our priorities, even for young people that haven’t yet purchased their first home.  

Home and Contents Insurance: Advice

Every piece of legislation that supposedly ‘regulates’ home and contents insurance providers actually just gives them more opportunity to throw out more smoke and mirrors small-print, so how can we actually understand what we are buying, and what we actually need? 

Home and contents insurance is usually a legal requirement for most homeowners, depending on which country you live in, and almost all mortgage providers will insist on cover being held, but the emphasis brought about by this attitude is that most people just buy a cheap policy, without actually making certain that they are covered in a way that is beneficial to them. 

It is vital when choosing home and contents insurance that you know the actual replacement value of all the items you wish to insure. Get local contractors to quote for replacing your garage roof, taking away a fallen tree from your yard, replacing all your plumbing and the like. Make a comprehensive list of all the possessions that you couldn’t live without, and those that you would prefer not to live without, and get a price for a realistic replacement. Remember that these figures and this list will change all the time, so be prepared to carry out this exercise on at least a yearly basis.

Home and contents insurance providers are in the business for profit, so they will always be trying to find a way to limit their liability, especially to individuals who are unlikely to be able to afford litigation in the event of claims not being adequately met. As a result, the homeowner who actually knows what their home and contents insurance policy means and what it covers will have an advantage, or at least less chance of being taken by surprise. 

When choosing home and contents insurance, shopping around for the best policy, and more competition among providers sounds like a good idea, but in reality this has led only to cheaper policies being the norm. Actual quality insurance at an affordable price is becoming harder and harder to find. Only by being informed and diligent can any of us hope to get the best home and contents insurance deal.