Our previous blog talked about the level of cover required when it comes to home insurance. This post highlights the two different types of insurance and how by having these correctly documented could save you having to investigate debt solutions in the case of an unfortunate event.
You can get standalone or combined insurance policies. (Some insurance companies now offer extra discounts if you take out other types of insurance with then such as motor, holiday or pet insurance.) The type of policy you would need, in part depends on whether you are a home owner or tenant. If you are a home owner, still paying on a mortgage, a policy covering the building is usually mandatory and you would have to ensure that you have an adequate policy in place. For the tenant, the landlord would usually have a buildings policy, but would not have contents cover in place.
Hannah Jones from a respectable comparison website is reported to have claimed that since they started to record insurance premiums in 2010, there has not been such a consistent drop in prices, because this year the reduction affects all 121 postal regions. Standalone buildings cover is now 7% cheaper and contents cover is now 16% cheaper. These are of course averages and you might find that your own insurance has gone up; this could be because of individual circumstances that are affected by the underwriting criteria of your insurance company.
An article in the Telegraph from 28 May 2013 the quotes Hannah as saying: “Competition among providers is continuing to drive down the cost of home insurance policies and it’s important that consumers take advantage of this.” This can be a painstaking task, either making contact with individual insurance companies or brokers by telephone or completing a quote on each company’s website. The most convenient way, is to log on to one of the many comparison sites. This means that you only have to enter your details once to compare a few companies at the same time.
This does not necessarily take in to account a combined policy, as I was unable to find any figures specifically for joint building and contents policies because these are usually provided on a more case by case basis.
With the falling prices of insurance, you may find that taking out both building and contents insurance is a more affordable option.
A final word, whatever method you choose to find your insurance provider, always remember to check the terms and conditions and policy wording of any insurance policy you decide to buy.