What is Home Insurance and why do I Need it?
No one can anticipate an emergency situation and so people are rarely financially prepared for when their home is subject to an accident, adverse weather damage, a fire or theft. However, these things do happen, building repairs are expensive and with most properties holding approximately £25,000 of contents, home insurance is a good way to be ready for the worst.
Home Insurance is generally separated in to buildings and content cover. You can normally purchase these policies together as one joint cover plan from most providers or you can purchase them separately. Buildings insurance will cover the structure of your building and will include the walls, windows, floors and ceilings; it will also include the fixed amenities in your household, such as the bathroom and kitchen suites. Contents insurance will cover your personal items, including jewellery, as well as your electronics, carpets, curtains etc.
AA Home Insurance Review
- AA Home Insurance has been awarded a 5 Star Rating from Defaqto for the 4th year running
- Flexible to suit your needs. A good level of cover comes as standard or you can choose even higher levels of cover if you need it.
They offer two levels flexible levels of Insurance:
- Flexible levels of contents cover which starts from £40,000 • Unlimited buildings cover for homes which is worth up to £1 million
- Alternative accommodation cover up to £25,000 if you cannot live in your home due to an insured event
- Accidental damage cover for non-portable gas and electrical items, such as a TV or washing machine
- Up to £3000 cover for items stolen from outbuildings or garages
Home Insurance Plus:
Their highest level of coverage with useful additions included in one package.
- Unlimited contents and buildings cover • £50,000 alternative accommodation cover if you cannot live in your home due to an insured event
- Accidental damage cover for your building and its contents • Up to £7,500 insured for items stolen from your outbuildings/garage • Home Cover for valuables up to £5000 both in and away, such as your phone and laptop
- Unlimited cover for replacements locks and keys if your keys are lost or stolen anywhere in the world • They will replaces items new for old, so won’t apply any depreciation to their value
Useful to Know
- AA offer 50% off breakdown cover for a year for new home insurance customers
- Extra add-ons include: legal expenses cover, home emergency cover and home emergency response
- Renewal fee may be applied
Choosing Home Insurance
When you’re choosing your home insurance, there are many things to consider. We’ve narrowed down some of the key elements of home insurance which you should be looking for
- Make sure they offer enough cover – Do you need building and contents insurance? It’s generally advised that you take out both but it does depend on your individual circumstances.
- Make sure the policy provides enough cover for you – All policies have their limits and it’s wise to make sure that your home is covered for the rebuild value rather than the market value. Cost your contents to make sure the policy will be enough to cover it all, most people vastly underestimate how much their home contents are worth.
- New for Old – New for Old cover for your possessions is worth considering, it’s offered as standard in many contents policies now. It simply means that you will receive a similar but new product to the old item, rather than the value of the old one.
- What excess are you able to pay? – Many home insurance policies come with excess charges, both voluntary and compulsory, so make sure your chosen provider’s excess policy works for you.