Commercial Insurance Articles
Are you properly insured at home?
19 Mar 2007
It's probably the biggest purchase you'll ever make, so it's surprising how many of us take out inadequate insurance for our homes – or fail to take out insurance at all.
Of course, for most of us, our homes are our castles. They're the place we feel safest, and it can be tempting to think that nothing can ever happen to change that. Storm damage, accidents and other unexpected problems, however, can all conspire to put your home at risk, so it's vital to make sure you're not only covered, but are covered properly.
Take those renovations you've been planning, for instance. With the advent of a string of TV shows dedicated to DIY and home decoration, painting, plastering and other home improvements have never been more popular.
While DIY can undoubtedly add value to your home, it's worth remembering that renovations don't always go to plan, and if your attempt at improvements go wrong, it could end up costing you money rather than making it. There's no point crying over spilt paint, but a major renovation that goes wrong could cause hundreds, if not thousands, of pounds worth of damage. Before starting a DIY project, then, contact your insurer and make sure the changes you'll be making are covered by your policy. In some cases you'll only be covered if a qualified professional carries out the work, and while this may seem costly, doing it yourself and getting it wrong could be even more expensive.
Once the paint has dried, though, and you're relaxing in your new and improved surroundings, try to find a few minutes to pick up the phone and call your insurer. As the changes you've made are likely to have increased the value of your property, you should be increasing your insurance cover likewise, otherwise fire, flood or other accident could mean that all your hard work will have been in vain.
Most buildings policies cover you not just for the building itself, but for fixtures and fittings such as kitchens, bathrooms and interior decorations. Some policies will also cover any outbuildings such as garages and garden sheds, so if you have any of these, or plan to build them, you'll need to check to make sure they're covered.
In addition to insuring the actual fabric of your home, you'll also want to insure its contents. Furniture, electrical equipment, white goods – even your clothes, CD’s and jewellery need to be covered in case of things like fire or theft, and it’s important to keep updating your contents insurance as you make new purchases. When purchasing contents insurance, think carefully about the things you own. It's all too easy to underestimate the value of our home contents, and most of us do it, buying new electrical goods or expensive designer clothes, and failing to alter our insurance policy to reflect the increased value of our contents. Things like music or clothing collections, for example, are built up over a number of years, making it hard to see their total worth. Imagine having to replace all of your CD’s or shoes at the same time, though, and you'll quickly realise just how important it is to make sure these items are taken account of when buying contents insurance.
When you're purchasing both buildings and contents insurance, you need to think not about how much the item you're insuring cost you to buy, but how much it would cost you to replace. These sums can be very different, and in some cases – with your home itself, for instance, or items such as jewellery – you may need to seek an expert opinion before deciding how much to insure the item for.
In the case of "high net worth" homeowners, for items such as fine art or expensive antiques adequate insurance becomes even more of a priority so it’s a good idea to speak to a specialist insurer who will be able to insure these high value items and make sure you're covered for every eventuality. This could include scenarios not covered by standard policies – for instance, cover for guest's possessions when they're staying on your property, for your children's property while living away from home at university, or damage by pets. With the problem of identity fraud becoming more of an issue, it’s not just your property that can be targeted by thieves, and you may also want to consider taking out cover for the theft of your identity.
Stride Limited and its sister company Computer Quote are home insurance brokers that can offer specialist home insurance policies for “high net worth” property owners, covering a wide range of risks from antiques and fine art to identity fraud and guest's possessions. Call 0800 389 9949 for a home insurance quote.
