How much insurance do you need for your home? If you do not insure it for its full value, you will risk having your claim reduced by 'averaging', which means that you will recover only a proportion of your claim. Where the cost of rebuilding your house goes up so that it is no longer fully insured, the insurance company can exercise its discretion to decide how much of your claim they will pay. So play safe and keep your house insurance under review.
Although separate coverage is available, your best bet is a homeowner's package that covers theft, liability, fire and other perils. (Particularly valuable possessions may require a separate policy.) Include inflation protection in your policy, as well as coverage for living expenses if your home becomes uninhabitable because of fire or flood. And don't forget to increase your coverage for any major improvements you make.
To save money, shop around and look for special deals - some companies offer discounts if smoke detectors and alarm systems are fitted.
To find a company that pays claims fairly quickly, call local contractors, roofers and carpet cleaners. Ask who pays them promptly- and without quibbling.
Work out how much your home is worth in terms of rebuilding and refurnishing it - not including the original price or the amount of the mortgage. Enlist the assistance of a reputable surveyor or builder, not an estate agent.
Make a detailed list of your possessions, then get a replacement-cost endorsement on your policy so that you'll be reimbursed at full value if your possessions are lost.
Remember that looking for home insurance quotes can often be a time consuming task - start your research in good time. The internet can be a useful tool for research and comparison.
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