Home insurance

Protecting your property

Since your home is likely to be your single most important and greatest financial commitment, it is worth increasing your security and minimising expense in case of flood, theft, subsidence and legal liabilities by choosing a home insurance policy with care.

With so many insurance deals on the market it's worth shopping around.

Key points to compare include:

• suitability for your particular needs
• cost
• flexibility: what happens if you miss a payment or wish to cancel or switch?
• terms: when does the policy pay out/are there restrictions?

Here are some tips on how to make sure you are getting the right level of cover.

There are two kinds of home insurance, one that covers the building and the other the contents of your home. First, there is no point in going for the cheapest rate if it doesn’t cover the cost of your bricks, mortar and possessions against loss.

While most insurers will cover ‘core’ risks, their terms and conditions will differ. Make sure you read the small print on all policy guidelines in alliance with the risks you personally need to account for. The level of alternative accommodation costs also varies between policies.

Since insurance companies charge you premiums based on the likelihood of fire, flood damage and burglary, one way of ensuring a good value deal is to reduce such risks as efficiently as you can. Increasing security by upgrading locks on doors and windows, installing burglar and smoke alarms and proving that your property is unlikely to be left unoccupied for weeks on end can result in a cheaper insurance plan.

In addition, if your home is especially vulnerable to flooding, some companies offer discounts for clients who take measures to reduce such a risk, for example, replacing timber floors with more water-resistant concrete and moving electrical points to a level above the likely flood plane. It is also worth paying extra for expensive items such as laptops, cameras and televisions.