Buying a house or a flat can be tricky. But the financial considerations don’t end once you have put your offer in: you have home insurance to consider! We asked Alan Allsop, Private Client Manager at PIB Insurance Brokers, to provide an overview of what insurance is, and what to look out for.

Household insurance will provide you with cover for your buildings, contents and personal possessions as well as a few add-ons.

There are three main types of policy to consider:

Standard

This is the most popular with optional accidental damage cover available. The policies provide standard buildings and contents sums insured ranging between;

Buildings £500,000 - £1,000,000

Contents £50,000 - £100,000

Personal possessions allows you to insure a sum insured away from your home. There will, however, be a policy single article limit of between £1,500 and £2,500 with any items above this value being specified.

Mid Networth

This is very much a sum insured based facility where you need to have an idea of the rebuild cost of your property from the survey report prior to purchase. The contents will be covered on a worldwide basis and the minimum sum insured will usually be £100,000. Personal possessions are now categorised as valuables mainly jewellery, watches and fine art with single article limits from £5,000 upwards.   

High Networth

Finally, High Networth is the top product, extending the Mid Networth product with higher limits and wider cover with valuable single article limits from £15,000 upwards.  

However, there are a few other things you may also need to consider…

Building Works

If you are purchasing a property with a view to extending or completely renovating the building check with your insurer as to the information they require to provide cover while the work is being carried out.

Contents Sum Insured

Spend some time going round your property, adding up the replacement cost of your contents, as it will surprise you just how much curtains, an old collection, your wardrobe contents will cost to replace.

Buildings & Contents

Does your policy provide pairs and sets cover? So, if a bathroom item is damaged or one of the seats in your three-piece suit is damaged the policy will replace the other undamaged parts of the set.

Endorsements

Make sure your property complies with any security conditions regarding door and window locks as they are important. There may also be conditions regarding trees, rivers and unoccupancy limits.

Valuations

This is for all three types of policy and should be updated every three years, the benefit being that insurers will see your actions as being a very positive move. Such action could, perhaps, meet any replacement shortfall if you make a claim for a valuable which has increased since your last valuation.

Policy Limits

From time to time check the summary of limits on the policy to make sure that everything is adequately covered. Pedal cycles, for example, can be expensive items and if they are kept in the garden shed does your policy provide suitable cover?

Finally, if you are not sure of any aspect of your policy, ask your insurer or your broker for clarification now. Waiting until you submit a claim will not help you if the cover is not available on the policy.