Why do I need Home Insurance?
Few people are financially prepared for an emergency situation at home. Repairing your home or rebuying lost or stolen contents can be expensive, so it can be a relief to know you’re covered given any eventuality.
Home insurance comes in many forms but it basically falls in to three categories:
- Buildings insurance
- Contents insurance
- Combined buildings and contents insurance
Many providers will give you the option to tailor a cover package to suit you. It’s important to work out whether you need both buildings and contents insurance as it is possible to take out a policy focusing on only one of these features.
It’s worth noting that some properties, such as listed buildings or buildings with thatched roofs, may require specialist cover and therefore, would not be covered by a standard policy.
Make sure you always read the fine print of policies as more and more companies are now excluding certain things which you may need and it’s good to be aware of extra charges, such as compulsory excesses, exit charges and interest on monthly payments which some companies do charge.
John Lewis Home Insurance Review
John Lewis offer three levels of cover: Essential, Plus and Premier. They also offer a discount if you book online.
- You can receive buildings cover up to £400,000
- You can receive contents cover up to £50,000
- Alternative accommodation is provided during an emergency up to £60,000
- You can add optional Home Emergency Cover – up to £500
- You can receive buildings cover up to £1,000,000
- You can receive contents cover up to £75,000
- Alternative accommodation is provided during an emergency up to £115,000
- Standard cover is provided for accidental damage
- You can add optional Homer emergency cover – up to £1000
- Unlimited Buildings cover
- Unlimited Contents cover
- Alternative accommodation provided in case of emergency, unlimited
- Accidental damage, full cover provided
- Home emergency cover included – up to £1,500
Specialist Home Insurance:
John Lewis also provide specialist home insurance which offers:
- Specialist cover for additional homes, holiday homes and buy-to-let properties, both UK and abroad
- Cover for properties with unusual features such as thatched/flat rooves, listed buildings etc.
- Personal protection for your possessions, both UK and abroad
- Accidental cover for buildings and contents
- Specialist cover for fine art an antiques
What is an excess?
Many insurance policies require you to pay out an amount of excess. An excess is the sum you have to pay when you claim on your insurance. Normally, the cheaper the insurance the higher the excess or more restrictions are applied when it comes to claiming.
An example of how excess works: if you have a claim worth £300 and you have a £50 excess, you'll only receive £250 from your provider.
Generally, there are two kinds of excess: a compulsory excess and a voluntary excess. Compulsory means that your insurer will set the price and you must pay it whereas voluntary excess is set by yourself.
Remember to set your voluntary excess carefully. If you're willing to contribute a large amount towards a claim, your insurer will reward you with a lower premium, but this could make claiming on your policy more expensive.