Is it essential to have home insurance cover?

Unlike car insurance, it is not mandatory to have home insurance. As with most insurance policies you can cancel your home insurance policy mid-term but before you do there are a few things you should consider first.

What is home insurance? 

There are 2 key elements to the home insurance cover available:

Contents insurance

Contents insurance covers the cost of replacing your belongings in the home if they are stolen, damaged or destroyed.

Buildings insurance 

Buildings insurance covers the cost of replacing/rebuilding the physical structure of your home should it be required.

When considering home insurance, you, therefore, need to decide whether you need buildings only cover, contents only cover or combined buildings and contents cover. 

Other things to consider when deciding whether you have the right level of insurance cover in place 

 If you have a mortgage, your mortgage provider will typically require you to have buildings cover in place. Usually, the mortgage provider will also ask you to inform them of any changes to your home insurance policy. It is then up to you whether you also obtain contents insurance to cover your belongings.

If you are swapping insurance policies or your insurance provider, You should always check that you have a new policy before cancelling your old one. You should also be aware that any additional protection such a legal cover or home emergency cover may also cancel at the same time as the underlying policy.

If you have made a claim on the insurance during the term of your policy, you will still have to pay the full premium and will not get any refund on cancellation. However, if you have not made a claim, you may be entitled to a refund on cancellation if you paid for your insurance in full. The level of the refund will be calculated by your insurance company and may also be further reduced as a result of cancellation fees or other charges raised by your insurer

If you would have a question regarding home insurance or would like a quotation, contact us here.

 

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