Insuring your home as well as its contents is something that many people are unsure of it benefits, until the unexpected occurs.
In fact there are many homeowners that labour under the misconception that they don't actually need to
insure their home or its contents. Not everyone knows that when a mortgage banks lends money on a property, they automatically insure the percentage of the property that they have lent on.
In other words, if you have a home that cost £200,000 and you have a £140,000 mortgage, the bank will have protected their interests by
insuring the property for that value.
But what about the balance? It is in every property owner's interest to make sure that their home is insured to its total replacement value in the event of fire, flood, "acts of God", war and indeed any eventuality that can occur.
So if you have just acquired a property, you first step should be to make sure that it is
fully insured. So shop around the various UK insurance companies for the best deal. Also you should bear in mind that you are not obliged to insure your property through your mortgage bank, although they would really like you to, as they will be earning a healthy commission by doing so.
Get quotes to
insure your property for its total value. You might discover that the online quote you receive for insuring the full value of your property is not a lot more than the quote that your mortgage bank will give you for partially insuring your property. Over time as your mortgage decreases, and the value of your property hopefully increases, then you should keep tabs with the extent of
your insurance cover.
Owning a home is the biggest property liability that most people have to cope with. Don't take it lightly or wait for accidents or disasters to happen. Have your home independently
revalued every few years, and make sure that your cover is sufficient to cover the worst possible scenario.
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