All about property insurance in the UK
No one has seen the future, of course, but willing to live your life with no attempts on your part to make the future easier is not a smart choice. An insurance, whatever kind it may be, protects you from denting your bank balance in case of either a natural disaster or some man-made one.
Defining ‘property insurance’
A property insurance is a policy that facilitates the owners of the property with financial restitutions in cases of damage of theft. A property insurance may include parts like renters insurance, homeowners insurance, earthquake insurance and flood insurance. A homeowners or renters policy is usually what is used when it comes to personal property owners. Upon making a claim, the insurance company will either reimburse the owner for the sum value of the damage caused, or provide with the costs associated with restoration of damage.
Your insurance company serves you provided you pay it an annual, or semi-annual premium. Depending on your contract, your terms or payment will be set.
Types of property insurance
There are various kinds of property insurance available, all suiting every case possible, for instance:
- Rental property insurance
This is the insurance that a landlord invests in. The kind of property insurance that you opt for is all dependent on your needs, and the needs of a landlord are different from those of a homeowner. For instance, a land lord’s priority is to get his property insured in case of reckless tenants. This kind of insurance like the rest of property insurance provides coverage for the building structure and the contents of it.
- Homeowners’ property insurance
A homeowners’ property insurance gives landlords the assurance that they need. This kind of insurance provides the tenants protection from damages due to disasters – natural or man-made – and cases of theft and robbery.
Taking a closer look at the technicalities
While property insurance may ensure to cover financial costs associated with damages to your property, it is required by law for the damage to be sudden and forceful. Meaning, the damage caused to your property should not be taking place gradually over a span of a couple of months. It should be sudden and abrupt, like a strong wind or fire would be.
Apart from protecting the value of your property, insurance policies often also include an essential condition for liability coverage. If someone who is attending a party at your house gets injured, the medical bills associated with their injury will be carried out by you. Same goes for any damage caused to neighboring properties due to your negligence. It will be you that will be paying for such issues. This is where property insurance aids you.
In another case, if a valuable item from your house is stolen upon your absence, you have the right to claim restitution, provided you have the right evidence showing that you owned it.
Benefits of property insurance
Apart from securing your future-self from suffering with huge financial losses, property insurance has a lot more benefits, for instance, it will keep you from stressing over the condition of your house. Knowing that you are backed by an insurance company, you will be a lot less stressed, regarding both, the condition of your property and the unseen events of the future. However, apart from its benefits, it is necessary by the law in the UK to have property insurance.
Be sure of the insurance policy you invest in
It is extremely important to know the coverage that you are being provided before investing in property insurance. Do not let yourself be fooled into paying more for less. Read through the papers thoroughly before signing them.
Things to keep in mind
If your property, more importantly your house, is left unattended for a certain amount of time, then the homeowners’ policy could potentially be canceled by the company. This is because an empty house is more prone to dangers of theft and fire. Therefore, the insurance company will detach itself from such risky projects. If you know that you are going to be in and out of your house, then you should consider investing in a separate policy.
Similarly, if you use your property as a workshop, a different kind of property insurance policy is applicable to you.
Common things to look out for
If your insurance policy provided repairs at replacement cost rather than actual cash value, you will benefit from it. How this works is, if a part of your house is damaged, a replacement cost will fund you with the whole sum of money required to repair said part. Whereas an actual cash value policy would require you to be funded with the amount of money the said part was estimated to be worth of at the moment of damage.
Compare before diving in
With advancements of technology and the introduction of revolutionary internet services, it is now very easy to compare quotes on the internet based on your requirements. This is one of the main reasons why property insurance costs have been falling – there is simply too much competition, and the buyers are aware of it all. Take some time out to conduct your research on the internet, compare, and then invest. Take all factors under consideration in choosing the one policy for yourself.