Insurance is a tricky business. Some people see it as an unnecessary expense, while others will make sure sorting out insurance is at the top of their to-do list. But what exactly is home insurance and do I need it?
What is home insurance?
It may sound like an obvious question, but it is important to know exactly how it works. There are two types of home insurance; building cover and contents cover.
Building cover insures a property for things like flood damage, fire and any general damage to the building or building’s permanent fixtures.
Contents cover is purely to insure the possessions in a home such as laptops, TVs and expensive jewellery.
Do I need home insurance?
Legally, you are under no obligation to take out any home insurance plan. It is not like car insurance, where it is illegal to not have your vehicle insured.
Should I get home insurance?
We would recommend that you do get some sort of home insurance, just so that if the worst does happen, you are not left with nothing and have something to fall back on. Nobody ever believes that the worst will actually happen to them, but when it does they are left in serious trouble. So why take that risk?
I am currently renting, what can I do about home insurance?
It is your landlord’s responsibility to ensure that the property is insured with building cover, but again they are under no legal obligation to have it insured. When you sign your contract/tenancy agreement, it is likely to state that the landlord must pay for damages or repairs for the property, but it is up to them whether they take out an insurance plan.
Your landlord will have no obligation to replace any lost or stolen items that you possess in the property, and you will not be covered by any of their insurance plans. This means, if you would like to protect any of your possessions, it is up to you to take out a contents cover plan.
If you are still unsure or would like to know anything else about insurance, feel free to get in touch with one of our experts. You will get straight through and we can advise you on what your best option is. We can even set you up with a call to our insurance partner!