Pitfalls to Look out for When Buying Home Insurance

Buying home insurance can be an important financial decision. To ensure that your home and its contents are protected, follow this guide to avoid the common pitfalls.

Shop around.

It is essential to consider not only which insurance is the cheapest, but also which offers you the best cover for your needs. When researching your options, get as many quotes as you can. A good option might be to go through an insurance broker, who is an expert in the field and can often find you the best policy at the best price. Price comparison sites tend to be user friendly and can give you an idea of what is on the market, however remember that they do not cover all the insurance companies and might not give you the cheapest deal. It is a good idea to compare the quotes you receive from the comparison sites with quotes from other online insurers. Banks and building societies often have good offers and even supermarkets have recently been advertising home insurance deals. Should something happen to your home, your family could depend on having the right cover, so make sure you are aware of all the options available to you.

Make sure the insurance covers everything you need it to.

It might seem tedious, but you should read the policy document carefully. Otherwise, you could find that you are not covered for something important when you need the insurance to pay out. Not only would this be a waste of money, but you could also miss out on a lifeline if you are in need. Once you have bought the insurance policy, you have 14 days within which you can still change your mind. If in doubt, ask someone to read over it for you, or get expert advice. Be aware that with some home insurance providers, you may still be liable to pay an administration fee if you cancel the policy within the time limit.

Be careful of buying home insurance as part of a package.

Again, the golden rule is to shop around. You may be offered buildings and content insurance when you take out a mortgage, for example. Just because you are already a customer of the mortgage company, it does not mean that you will get the best insurance deal with them.

Tell your insurer everything they need to know.

If you do not disclose absolutely everything to your insurance provider, they could refuse to pay out in the event of a claim. This also applies when renewing your home insurance. Things you need to disclose include having tenants in your property, any renovation work or extensions, liability claims made against you and any past cancelled or refused insurance claims.

Get expert advice if necessary.

If you have a house that is not of a conventional construction – for example, if it is built from unusual materials – you may be better off consulting an expert such as an insurance broker. They will be able to advise you on the best policy to suit your needs.

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