GUIDE TO HOME INSURANCE
Owning a property is a substantial financial commitment and, therefore, needs protection.
Whether you are a homeowner, first-time buyer, or landlord, home insurance is a crucial consideration.
Is home insurance mandatory?
Home insurance is not required by law, but if you are securing a mortgage, expect lenders to require buildings insurance to be in place. The Association of British Insurers reports that in 2023, £4.86 billion was paid out to homeowners and businesses, with £2.55 billion covering home insurance claims, a rise of nearly 10% from the previous year, predominantly due to weather damage.* These are not just statistics; they are a testament to the security and financial relief home insurance provides.
Do I need to protect the property I am selling?
As with all property owners, we recommend for you to always consider protecting your assets, right up to the moment the sale completes Any damage before the completion of a sale can lead to delays or even cause the sale to fall through, potentially costing you dearly. With non-weather-related water damage claims up by 20% and theft claims increasing by 15%, the risks are tangible.*
Do I need home insurance as a buyer?
For buyers, securing the good quality buildings insurance for your circumstances is often a non-negotiable mortgage requirement. Buildings insurance is critical for safeguarding the structure of your dream home against calamities. Without it, you may be exposed to hefty expenses of repairs or rebuilding. Additionally, investing in contents insurance, while not mandated by lenders, is equally vital, covering your possessions within the home.
These two insurance types offer you the cover you need to help protect your assets and could potentially save you money in the future.
Is there landlord-specific insurance?
Ordinary home insurance will not usually be suitable for landlords, so policies exist to protect properties that are to be rented out. These policies can help protect against property damage, including tenant-inflicted damage, legal liabilities, and loss of rental income if the property becomes uninhabitable due to damage. Separate to buildings and contents insurance, landlords can also arrange insurance to protect their rental income and cover legal expenses if they need to evict a tenant. Lastly, if you own or are buying a non-standard property, there often are specialist insurance options for unique homes like thatched cottages or listed buildings, as well as for holiday homes or those at risk of subsidence. For a tailored solution, consult with an insurance expert.
What other insurance products do I need to know about?
Consider adding optional extras to your comprehensive home insurance, such as accidental damage, home emergency cover, and legal expenses cover. While these increase your home insurance premiums, they offer targeted protection and could mitigate future costs and inconveniences.
Home insurance is not just another item on your to-do list; it's a robust safety net for your home and belongings against the unexpected, and it is important to protect your investment whether you are a buyer, seller or landlord. Choosing the right home and contents insurance is about balance. Over-insuring leads to unnecessary costs, while under-insuring poses significant risks.
ENSURE PEACE OF MIND FOR YOUR HOME’S PROTECTION
Sources:
*Weather damage insurance claims worst on record | ABI
Correct at the time of publishing – Date
MS/CON/7526/07.24
Connells Residential is registered in England and Wales under company number 1489613. Registered Office is Cumbria House, 16-20 Hockliffe Street, Leighton Buzzard, Bedfordshire LU7 1GN. VAT Registration Number is 500 2481 05.
For activities relating to regulated mortgages and non-investment insurance contracts, Connells Residential is an appointed representative of Connells Limited which is authorised and regulated by the Financial Conduct Authority. Connells Limited’s Financial Services Register number is 302221
NEED AN APPOINTMENT?
