Do you need Home Insurance?
Do I need Home Insurance and if I do, which Home Insurance do I need? These are probably the two questions we’re most likely to hear people ask.
The 27.2 million homes in the UK, have a total contents value of nearly £1 trillion
The answers depend on you, your choices and your personal circumstances. For many of us, the first time we encounter Home Insurance is when we move into our own place, whether rented or owned. That will usually be a time of great financial pressure and your focus is most likely to be on reducing your outgoings. So, while Home Insurance may be desirable, do you really need it?
More than a quarter of homes in the UK, 7.5 million, have no Contents Insurance
Financially speaking, it’s worth considering what it might cost if your home suffered damage in a fire or a storm, or even from a leaking washing machine. Placed against the potential cost of carrying out repairs or replacing personal belongings, the cost of a monthly Home Insurance premium might seem like less of a stretch. And beyond the financial consideration, it could also provide you with some peace of mind.
A lack of contents insurance leaves possessions worth over £266 billion uninsured in the UK
In practical terms, if you’re taking out a mortgage, many providers will require Buildings Insurance to be taken out as a condition of offering a loan. There are exceptions – for example, if you’re a leaseholder, then the responsibility for Buildings Insurance may lie with the owner of the freehold. The same may apply if you live in a shared ownership or a block – the responsibility for Buildings Insurance is likely to be with the managing agency. Though you might still want to consider taking out Contents Insurance for your personal belongings.
The average home has contents worth more than £35,000
If you live in rented accommodation, you might think Home Insurance is purely the responsibility of your landlord. In terms of Buildings Insurance you’d be right, but their Insurance will not cover your personal possessions, and you might want to take out Contents Insurance to be covered.