Building Insurance
“AS WITH ALL INSURANCE POLICIES, CONDITIONS AND EXCLUSIONS WILL APPLY.”
Property insurance, such as buildings insurance is designed to provide financial protection in case of damage to the structure of your home, including the walls, roof, and floors. It usually covers damage to fixtures and fittings as well. Garages, sheds, and fences may also be covered, along with the cost of replacing items such as pipes, cables, and drains. However, you should check your policy to ensure these are included if they are important to you.
Buildings insurance pays out for repair or replacement within your home, ultimately covering the cost of rebuilding the property itself.
Often, the sum insured will be different from the value of your house, as it is calculated based on the amount required to rebuild the property to the same standard and specification. This is known as the rebuilding cost.
The aim of this type of insurance is to provide peace of mind, ensuring that in the event of damage requiring repair or replacement, you will receive payment to cover part or all of the costs.
If you have a mortgage on your property, it will be a requirement of your mortgage conditions that you take out and maintain premiums on a buildings insurance policy.
“As with all insurance policies, conditions and exclusions will apply.”
Contents Insurance
Contents insurance is designed to cover you against loss, theft, or damage to your personal and home possessions. It can also cover you if you take items out of the home, such as on holiday. The insurance protects your possessions as well as those of close family members living with you.
Contents insurance covers loss and damage caused by specific insured events, which can include fire, storm, theft, and vandalism.
A policy excess applies, meaning that not all of the loss will be covered by a claim. Having a larger excess can help reduce the cost of the policy but will limit the amount you can claim.
You should ensure that you agree on the level of cover and what is protected with your adviser, and then re-check this when you receive your policy documents.
The aim of this type of insurance is to provide peace of mind, ensuring that in the event of loss or damage requiring repair or replacement, you will receive payment to cover part or all of the costs.
“As with all insurance policies, conditions and exclusions will apply.”
Landlords need to protect buy-to-let properties against unexpected damages using a different type of insurance policy, compared to standard building insurance policies.
Homeowners Income Protection
Homeowners Income Protection, also known as accident, sickness, and unemployment cover (ASU), is a type of income protection insurance. This means that if you are unable to work for a period, you will receive regular payments to help cover your mortgage and other expenses.
This is a short-term income protection policy designed to pay you a tax-free benefit if you cannot work due to an accident, illness, and/or unemployment not caused by your own actions (depending on the cover you have selected). If you purchase unemployment cover, you will also be entitled to coverage if you leave your job to become a carer for a member of your immediate family.
Payments begin after the qualifying period specified in your policy documents.
Policyholders must be working for at least 16 hours a week in the UK when taking out the policy, be under 64 years of age, and have a mortgage agreement on a property they live in permanently in the UK.
You should fully disclose any illnesses, conditions, and medical treatments you have undergone when applying for the policy.
Additionally, you must inform the insurer if your circumstances change, particularly if you change your address, working arrangements, or if your income changes. Your coverage may be invalidated if you fail to do so.
“As with all insurance policies, conditions and exclusions will apply.”
