Comparing Home Insurance Quotes

Comparing Home Insurance Quotes

Home insurance, though not mandatory, is one of the insurances recommended for homeowners to purchase, in order to safeguard the house and its contents within. Also, in case of a mortgage, a home insurance is necessary as per the contract. Check out free online home comparison system for a cheap home insurance quote today. We compare quotes from detached houses to flats or terrace houses to bungalows. Quotes displayed are provided by our panel of UK insurance providers.

Types of home insurance

There are two basic types of home insurance policies-

● Policy covering the house and building – this covers the actual house and its fixtures, such as bath and shower fittings, in-built components of the kitchen, cupboards and other elements that are fitted. It also includes the outer buildings, such as the garage and garden sheds. However, most policies do not consider the pool, fence, driveway and gates in this.
● Contents policy – this covers all the contents within the house, which the homeowner while moving will likely take along with them.

Causes covered by a home insurance policy

The basic causes which lead to damage and are covered by most home insurance policies include-

  • Damage caused by theft of the property or by an attempted theft
  • Floods or storms
  • Explosions, fire, earthquake and lightning
  • Damage done maliciously
  • Heave, landslip or subsidence
  • Riots
  • Trees and branches that have fallen
  • Leaking pipes or water tanks
  • Heating system oil leaks
  • Damage due to a vehicle, aircraft or animal
  • Breakage of receivers of radio, TV or satellite

Many policies also cover personal liability in case of homeowner’s responsibility for an injury caused to someone within the house.

However, damage to the house due to poor or faulty workmanship or because of wear and tear is not covered by insurance policy.

Optional special and extra coverage

Certain optional coverage is also provided by insurance companies, such as –

  • Coverage for damage to contents taken out of the house or accidental damage to the property by the homeowner.
  • Cover for identity theft, including for any expenses incurred while reclaiming the identity.
  • In case of disputes regarding property, or personal injury, some policies cover cost of legal expenses.
  • In situations requiring repairs, labour or while having to stay elsewhere for a while, some policies cover the expenses.

Home insurance policy comparison

Before going ahead with a home insurance policy just on the basis of lowest premium payable, it is advisable to check for what all the policy covers. It is best to study the policy in detail rather than making assumptions.

For instance, some policies provide coverage for damage caused to contents outside of the house or due to the homeowner’s fault but not if the house is let out to tenants.

Policies must also be compared for ‘new-for-old’ clause against indemnity clause. In new-for-old policy any replacements or new building costs are covered by the policy. Indemnity policy considers depreciation and though cheaper provides less coverage.

Amount to be insured for the home

Imagine a scenario where the house and its contents are completely destroyed. In such a situation, the amount insured in the policy must cover the costs for rebuilding the house along with replacing the possessions. This is when new-for-old policies seem more favorable than indemnity.

Some insurance providers, estimate coverage based on the size of the home, using as guide the number of bedrooms.

However, most policies have a certain maximum limit, especially for contents, such as jewellery, ornaments and art.

Premium reduction tips

  • Discounts are offered when purchasing home and content policy from the same provider.
  • Paying premiums annually is rewarded with a 5% discount from the providers.
  • Premium is reduced if the home is installed with security systems.
  • Premium is less for policies where you cite high excess but turns out to be expensive while making a claim.