Home Insurance More Important than Life Cover for Brits

A recent report found that while 73% of people have home contents insurance only 38% have life insurance. Does that indicate people value their homes and possessions more, or are they just unaware of how important life insurance is? Here, we take a look at why both types of insurance are important and find out how you can keep costs down to make sure you and your family are protected.

Home insurance
There are two parts to home insurance – building insurance (to cover the physical structure of your house) and contents insurance (to cover, as the name suggests, your home’s contents). While most mortgage providers will stipulate that you must have building insurance, to protect their financial interests as much as your own, contents insurance is optional.

Do I need contents insurance?
Ask yourself this: in the event of theft or damage could you afford to replace your computer, your television, your antique chest of drawers – or whatever else you might have? Now ask yourself this: knowing that home contents insurance costs on average less than £15 a month, just how hard would you be kicking yourself if something were to happen to your possessions? Contents insurance is highly recommended at all times – whether you rent or own the place you live in, as it protects your possessions against everything from theft to destruction in a fire.

Making home insurance affordable
There are plenty of ways to keep the cost of home contents insurance down – obviously comparison websites are a good start. Combining contents and buildings insurance can sometimes reduce costs, but bear in mind that sometimes separate policies could work out cheaper. Also, make sure you accurately evaluate the value of your contents. Over-estimate their value and you’ll be paying more than you need to; under-estimate and if you need to make a claim you might find yourself getting less than you expected. There are also things you can do yourself to lower quotes – such as improving your home security with better locks and a burglar alarm.

Life insurance
Discussing life insurance can be pretty grim. However, it’s a fact of life that sometimes tragedy happens, and refusing to acknowledge it won’t reduce the chances of it affecting us. Making a plan for a worst-case scenario on the other hand will ensure that if disaster does strike the effects will at least be minimised.

While people with children or partners to support may realise the benefits of life insurance, some people claim they don’t need it because they’re single. However, there are a number of reasons why life insurance may be still be useful. For starters, funeral costs can still be high, even for simple ceremonies. Hard-pressed family members could be made to meet these costs. Also, if your health deteriorates you may not be able to take out life insurance in the future, perhaps when you have a family and do want cover.

Making life insurance affordable
As has been stated before, you can find a cheaper policy simply by looking around for the best offer rather than picking the first thing that grabs your attention. However, as before, there are also actions you can take to help lower costs. Your lifestyle will often influence the cost of insurance – for example, non-smokers get a better deal. So making changes to your lifestyle to help minimise health risks could help lower the cost of your life insurance in the long term.

 

Written by Dan Richard, a home insurance professional and experienced blogger

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