National Society

Home insurance or homeowner’s insurance as it is sometimes also known, is a type of personal insurance protection that covers various incidents that can happen in and around the home.  For example, home insurance typically covers the loss of any items in the house, whether this results from fire, theft or storm damage, as well as covering any damage to the property.  In addition, homeowners can pay for policies that cover the loss of the use of the property, which would mean they have to live elsewhere for a period of time, as well as the loss of the homeowner’s personal effects when they are located outside the home.

In addition to the normal cover, customers are able to purchase additional items if they feel they need them.  For example, anyone that lives in an area prone to flooding might choose to opt for an extra policy that would cover them if anything happened to their property as a result of water damage.  The policy premium would, of course, be higher when opting for such extras and therefore might not be the best choice if looking for cheap home insurance.

In a recent survey carried out by a group of financial researchers, it was discovered that more than eight out of ten Britons are turning to the internet in a bid to find cheap house insurance.  As well as trying to save money, it was reported that, for those that led very busy lives, being able to compare house insurance on the internet was important.

Insurance comparison sites can provide policy deals quickly and the websites are created to be as user friendly as possible, making any search results easy to understand.  Having resources available to them that allow the public to search such a large number of providers in one go is particularly useful, especially as the country has seen an increase in the number of policies available.  The survey revealed that a 19% growth in the number of buildings insurance policies was seen between 2008 and 2011.  In addition, there was a growth of 15% in the number of home contents insurance policies available.

The research also found that customers were willing to switch providers in order to gain the best deal, with around 34% of insurance policyholders changing their provider between the 2009 and 2010.  Even though they found that the number of people looking to save money by cutting the cost of insurance had grown, which is positive news for the insurance industry, the findings also showed that customers were not loyal to a particular provider when it came to saving money.

Like car insurance, house insurance is generally a must in the UK. This is especially true in the case of homes that are bought on mortgage, because any damage to the property must be repaired, this means funds must be available to pay for the work required to bring the house back to standard. However, unlike car and house insurance, contents insurance is very much at the buyer’s discretion. Contents insurance covers your personal belongings against theft or certain types of damage. For people who have many valuable items, it is advisable to invest in at least a basic level of contents insurance, as they are not only costly to replace, but they are also more prone to being tempting to thieves.

Contents insurance can save money in the long run when disasters are taken into account. However, most of us are looking to save money, but not every insurance company offers the same value with their cover. Luckily there are numerous ways to compare contents insurance providers such as Policy Expert, the number one way being to compare premiums on the internet. A wide range of price comparison websites have given rise to a new industry, whereby insurance providers put themselves up for comparison against their competitors. This enables consumers to find the deal that is best suited to their exact needs. Of course, most insurance is competitively priced when the reputation of the provider and specific terms of the contract are taken into account. Always be sure to read the fine print in order to judge how well each option is priced.

As a responsible landlord, ensuring that you have adequate insurance cover for your property will give you some peace of mind when operating in the rental market.  Landlord insurance is an essential element that both the landlord, and in some respects the tenant, can rely upon in the event that something goes badly wrong during a tenancy.

Before entering into renting out a property, landlords should take the time to understand and review any existing insurance policies and commitments they have with regard to their potential liabilities. It makes very good financial and legal sense to set some clear ground rules about exactly who is responsible for what. Most importantly on the part of the tenant, what is expected of them when they are custodians of their landlord’s property throughout the duration of the lease.  It is also advisable in some cases to get professional advice on this point, as some standard home insurance policies may not provide adequate cover, or might not provide comprehensive or unrestricted cover in some rental property circumstances.

Potential landlords should ensure that they keep their existing insurers aware of any intention to rent out their property, as any subsequent claim could be invalidated if insurers have not been told of the situation.  It is really a very good idea to take out a specific and comprehensive landlord insurance policy, to protect you in the event that a problem arises during the course of a tenancy.

Tenants are responsible for their own possessions when kept inside a rented property. There are specialist products in existence regarding landlords, tenants and rented property, which aside from buildings and contents includes possible legal expenses, rental guarantees and emergency repairs cover.

Whilst universities and colleges typically provide contents insurance for those staying in their halls of residence, as soon as a student leaves those halls and has to find accommodation in the so-called “real world”, they will need to find insurance cover, unless they are already covered under their parents’ contents insurance. Unfortunately, student residences provide an attractive target for thieves, as laptops and ‘smartphones’ are generally considered essential items for students in today’s hi-tech learning environments.

Students’ Contents Insurance
 
The National Union of Students (NUS) recommends that students organise and arrange their insurance requirements before they arrive at their new accommodation, since their contents are likely to be most at risk during the first few weeks of the academic year. The NUS preferred provider has created a cheap contents insurance package tailored especially for students. As well as covering home contents valued at up to £3,000, this package includes a 24-hour gadget replacement line and students can add a range of extras to cover such essentials of student life as bikes, musical instruments (for music students) and coursework materials.

Student Contents Insurance From Other Providers

Of course, students are free to choose policies from a number of providers, not just the one recommended by the NUS. A number of other insurance providers such as Policy Expert have created cheap contents insurance for students, and all the major high street banks have student advisors who may be able to provide coverage through the bank. However, it pays to remember that an advisor attached to a specific institution, whether it is a bank or an insurance company, will be trying to sell their own products rather than providing impartial advice. It always pays for students to talk to an independent financial advisor before making a final decision.

House insurance is also known as hazard insurance or homeowner’s insurance.  This is a type of property insurance which covers private homes.  This type of policy covers a whole range of insurance protection, including loss or damage to the property itself, loss of use or loss of any personal possessions belonging to the homeowner.  These policies will also cover any accidents that happen within the home or within the policy boundaries.  House insurance policies will usually require that at least one named insured person on the policy lives in the property that is being insured.

Cheap buildings insurance costs are variable depending on a number of factors.  The cost of the policy is calculated mainly on the costs associated with replacing the building in terms, but this may also be affected by additional items that are specific to that building.  Policies are usually long-term contracts, and tend to be very specific in terms of what is and what is not covered within the policy for various events.  Typically, floods and claims due to wars (including nuclear explosions) are excluded; however in the case of floods, special types of insurance can be purchased for these eventualities.  These additional policies will be adjusted to reflect the additional replacement costs associated with flood damage.  It is notable that in the UK, rebuilding costs are often lower than the market value of the property.

House insurance policies are term contracts that are effective for a fixed period of time.  Premiums are paid to insure each term, and these can be affected depending on a number of situations i.e. the property’s proximity to a fire station, or whether the property is equipped with a fire alarms or sprinkler, if there are approved locks on the doors or windows, or in some cases, wind mitigation measures.  Recently, the UK has seen a rise in house insurance premiums due to fraud and unpredictable weather.  This has had the indirect result of competitiveness amongst insurance companies in the market, with price comparison sites becoming more popular as consumers become more sensitive to the price of premiums.

Our homes are amongst our biggest assets.  The shelter provides us with safety for our families and most treasured possessions.  Yet accidents can happen, risking not only large sums of money but also our futures.  Given what is at stake, buildings insurance offers protection from floods, fires, and other damage to your property that can pose a serious risk to your livelihood.

Buildings insurance with accidental cover commonly means insurance for damage to the structural integrity of the house and the materials used to make it.  This type of insurance normally covers damage to the windows, decoration, any cables and pipes on your property, as well as outdoor fixtures such as gates and fences.  Premiums are usually based on the cost to build your house from scratch, and take into account weather damage, subsidence, and acts of vandalism. 

Some insurers offer extra cover to insure separate buildings on your property, for instance garages or greenhouses, and may also cover the permanent fittings within your home such as stairs, baths and kitchens.  It is always worth being absolutely clear on your cover as there are a number of ways to invalidate your insurance.  The most common one is damage caused by building work.  If in doubt, it is always best to notify insurance companies and pay any extra premiums if requested.

Insurance of your property is an absolute necessity for any homeowner.  As so much of our money is tied up in our homes, it effectively gives protection against serious financial difficulties or even ruin.

Choosing furniture to put in your rental property should be done with your potential tenants in mind and also be chosen to comply with the terms of your landlord insurance.  It isn’t always necessary to furnish your property as many tenants will either have their own furniture or be willing to buy their own, but it can sometimes be an advantage to provide your own furniture. 

It may be possible to provide furniture and increase your rental income by requiring more rent, although this is not always possible, so this should be a consideration when deciding whether or not to furnish.  Regardless of whether the furniture is new or second-hand, it must comply with relevant rental legislation and standards.  Items such as a cooker, dishwasher, and fridge-freezers can make a property seem much more convenient to potential clients and therefore may attract a higher rental value.  If you are renting your property as a house share it may be vital to provide furniture – a student house share, for example, will require a desk, a bed, and storage facilities in each room.  A family may need a room that has been specifically made safe for a child to use. 

Once your property has been furnished, keep a written inventory so that you can be sure of what pieces of furniture are present.  Once this has been done, produce a copy and agree with your tenants as to what is present. A written record can save time and effort in the event of a dispute.  This can also be useful in the event of a claim upon your landlord insurance.

In order to secure a mortgage, it will be necessary to obtain buildings insurance.  All mortgage lenders will insist on buildings insurance as part of a mortgage agreement.  However, if the building concerned is not financed by a mortgage, then buildings insurance is not compulsory, and is purchased at the owner’s discretion.

When securing buildings insurance do not assume you have to use the insurance product suggested by the mortgage lender.  You are not obliged to use the services of the insurer recommended by your mortgage provider.  Shop around and compare prices of like-for-like policies to guarantee the most competitive price.

Buildings insurance is there to cover your property against flooding, storm damage, fire, lightning, theft, vandalism, riots, subsidence, moving objects (such as a lorry hitting the house) and leaking oil or water from a tank or pipe.  It is primarily concerned with the structure and fabric of a building.

When applying for buildings insurance you may be requested to provide an estimate for the cost of re-building your home.  The figure for re-building your home is not the same as the market value, the figure you would re-sell it at.  Take into consideration demolition fees (if necessary), site clearance and builders’ and architects’ fees and materials.  If this sounds like a daunting prospect, helpful online calculating tools can be found on the Association of British Insurers’ website.

Simply put, you cannot afford to be charitable when it comes to securing the longevity of your investment. Buy-to-let property in the UK has seen a steady rise in the last few years and it is for this reason that the acquisition of landlord insurance has become essential.

There are many disasters that can befall a landlord and the ones that are most disastrous are those that have a direct impact on financial resources. It is not easy to know what you need to cater for when you have tenants residing in your property.

The security of rent should not lull you into a false sense of security and thus make you lose focus on what is essential in maintaining the financial income from your property. Do not expect to be able to fully relax when your property is in the hands of others. Being responsible is being able to have the foresight and the acceptance that things can easily go wrong in an instance.

When it comes to getting rent, tenants often try their best to ensure that it is paid up on time.  When this happens your investment is able to live up to its promise of providing you the financial security of income that you envisioned. However, in instances where they are unable to fulfil this part of the agreement having the right landlord insurance proves beneficial. Depending on the type of policy you have, you may be able to claim some of the rent back from your insurer.