Home Insurance

If you have a mortgage, your lender will insist that your property (and their security) is protected by buildings insurance. It usually pays out if your property is destroyed by fire, floods or subsidence (although you will need to check if you live on a flood plain, for example). Damage to fixed fittings such as baths and kitchens are often included, as well as sheds, greenhouses and garages.

You might be offered buildings insurance when you take out your mortgage, but you don’t have to take what’s on offer. Use the key policy information to shop around and get the best deal for you.

If you purchase a leasehold property (such as a flat in a block of flats) the freeholder may have arranged buildings insurance for the whole block, in which case you may not need your own buildings policy.

What isn’t covered?

Your cover is based on what your home would cost to rebuild. You can check whether you have enough buildings insurance through the Building Cost Information Service (BCIS) website. It has an online tool to help you calculate the sum you should insure your building(s) for, in case your home has to be entirely rebuilt.

You need to tell your insurer if you extend your property, for example with a loft conversion or conservatory. Your belongings are not covered – these need to be covered separately with contents insurance – see Contents insurance.

Keeping costs down

As always, shop around. You may also find that you get a better deal if you buy buildings and contents insurance together. Most policies have a standard excess charge which means you agree to pay the first part of any claim, for example the first £50 or £100. If you agree to pay a higher excess you might get a cheaper policy. Always compare what’s covered by a policy, not just the price – the key policy information will help you do this. Some might be cheaper than others, but they may not offer the same level of protection.

Benefits can include:

• Accidental Damage Cover
• Building Cover
• No Claims Discount
• Legal Liability
• Metered Water
• Loss of rent or costs for alternative accommodation

What’s it for?

It covers the loss of or damage to the contents of your home. This includes your furniture, electrical goods and other items within your home. Some policies cover you for items you take outside, for example cameras, jewellery and briefcases. Different policies offer different levels of cover but generally you’ll be covered against theft and fire, and have the option to insure against damage you may cause by accident. It is always vital that you thoroughly read and understand the full policy terms and conditions. 

If not already covered by your contents insurance, you may want to consider travel insurance for loss or damage to your personal belongings whilst travelling. For more information see Travel insurance.

What isn’t covered?

Anything beyond the maximum amount your insurer says they will pay, and it may pay a maximum amount on single articles. You’ll need to specify the value of the contents. Some companies have limits on the value of any one item under the general policy so you’ll need to specify individual items such as expensive jewellery or camera equipment, for example. Your cover may also be affected or cancelled if you leave your home empty for a long period of time, or if you let it out. Damage to the building itself is also not covered; this needs to be covered separately with Buildings insurance – see Buildings insurance.

Keeping costs down

Many insurers will offer discounts if you have a burglar alarm, window locks or if you’re a member of a Neighbourhood Watch scheme. You may also get a deal if you combine contents and buildings insurance. 

Most policies have a standard excess charge which means you agree to pay the first part of any claim, for example the first £50 or £100. If you agree to pay a higher excess you might get a cheaper policy. 

Always compare what’s covered by a policy, not just the price – the key policy information will help you do this. Some might be cheaper than others, but they may not offer the same level of protection.

Level of cover

Some contents insurance policies offer new for old. This means they’ll replace old damaged appliances and possessions with new ones when you claim. 

Bear in mind that your premiums may increase the following year, or the insurance company may refuse to cover you for the same risk if it happens more than twice, for example.

Benefits can include:

• Accidental Damage Cover
• Credit Card Misuse
• Deeds, registered bonds and personal documents
• No Claims Discount
• Domestic outbuilding contents (other than garages)
• Door lock replacement
• Frozen food
• Garden
• Gold, silver, jewellery and furs
• Money
• Seasonal / Wedding increase info

Private Medical Insurance (PMI) gives you the reassurance of knowing that, should the need arise; you and your family will get prompt access to private medical treatment. 

It’s when you need to make a claim that you realise just how wise investing in health and medical insurance can be. 

With NHS hospital waiting lists get longer, most people would prefer to be able to jump to the front of the queue; not join the back of it. 

Most PMI policies will give you access to –

• Dedicated Nurse Service that provides one-to-one telephone-based clinical support and advice for cancer patients and their families.
• Telephone based health information lines, usually available 24 hours a day.
• A range of covers allowing you to choose what’s best for you and your family.
• Private medical treatment at a time that suits you and your family.
• Hospitals of your choice.

Premiums are worked out on the basis of age and the type of cover required and there is a wide range of different insurances to choose from. At the basic level PMI clicks in when you need specialist treatment or you need to go into hospital. Some policies cover you if the NHS cannot provide treatment within a certain period of time. 

At the luxury end of the market there are policies that cover a wide range of medical services such as dentistry, eye care and even spectacles, although the more a policy covers, the higher the premium will be. 

In order to make sure the policy you choose is the right one to meet your needs it is worth speaking to an adviser who has specialist knowledge in medical policies and can guide you through the maze of different offerings on the market.

If you want to speak to us or contact us direct, either give us a call on 01608 690740, email admin@cotswoldmortgagesolution.co.uk. or fill in the form below and we will get back to you as soon as we can. Thank you.