Introduction - probably the biggest purchase you will make in your life is that of your home. To qualify for a mortgage to purchase a property, you will need to satisfy your lender that you have a home insurance uk policy in force that confirms to their terms & conditions.  Most insurers are aware of these terms & conditions and aim to make their polices compliant.  There are a large number of policies on the market available from insurance companies direct, banks, building societies and via brokers who may be able to offer you more choice.

It is best to shop around for your cover and always compare prices taking in to consideration the scope of cover and the exclusions & policy excess. Your insurers or broker should provide you with a “Key Facts “leaflet prior to you accepting your insurance policy. This document will point out the main points covered by the policy as well as any significant or unusual exclusions. The Financial Services Authority require this leaflet to be given to you.

As well as insurance for the fabric of your home, you can also purchase Contents Insurance and All Risks Insurance for valuable items and Pedal Cycles etc that you may take out of your home.  As with all types of insurances, always disclose all of the facts to the insurer, remember, that failure to disclose a “material” fact to an insurer or broker acting on your behalf may invalidate a future claim. If you are in any doubt as to what constitutes a material fact, you should always refer to the insurer or broker concerned.

What is Buildings & Contents Insurance? - Also referred to as home insurance uk, Homeowners Insurance or Household Insurance, they amount to the same. Quite simply they are insurance products that can be purchased from a variety of sources to cover the fabric of your home and / or your personal possessions that are kept in the home.  Cover can be extended to cover items such as valuables that are temporarily removed from your home. This extension is often called “All Risks” Insurance.    None of these insurances are compulsory but you may find it a condition of your mortgage that you buy at least Buildings Insurance to protect the lenders financial interest in the property. Most policies are similar in the covers they provide as mortgage lender etc have a standard set of perils that must be provided to secure a loan on the property. If you have a look at our section on “What is covered”, you will see the standard range of insurance perils that are usually provided.

How to distinguish between Buildings and Contents? - In simple terms, anything you would take with you when leaving the property is classed as Contents, anything that you would leave behind is “Buildings.”  Of course there are some grey area such as fitted kitchens & wardrobes & sometimes carpets etc but “ If an item has become annexed to the building in such a way that it looses its own identity, it should be classed as part of the building.  Thus a fully fitted kitchen would be classed as part of the building but a cooker that merely slides under a worktop would not. If in any doubt, always refer to the insurer or broker that you are hoping to place the contract with.

When you apply for a quotation; the insurer or broker will ask you a series of questions, this can sometimes be time consuming and tedious. What the insurer is attempting to do is to build up a “Risk Profile” in order for them to offer you as competitive a quotation as possible. After asking you a set of questions, you may find that the insurer will offer no quotation or a premium that is considerably more than others available. Don’t take this to heart, it’s nothing personal, it could just be that you do not fall in to their “target insurance market” or you may find that your property is situated in an area which is rated In a higher bracket than other insurers.  This could be caused by that insurer’s previous claims experience in your area or simply over saturation; they well have too many risks in your area already.

The Financial Services Authority places strict rules & regulations on the selling of General Insurance products, insurers and required to satisfy “demands & needs & provide a suitability statement. Insurers can provide products on either an advised or a non advised basis, whatever method, you should be provided with sufficient information to make an informed choice as to the suitability of a particular insurance product.  Always check your insurance documentation and refer back to the insurer immediately if you have any queries.

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