When you are buying a new home, you need to make sure that it is covered by a home insurance policy. If you are a first time buyer, you might struggle to find the right home insurance policy for you. Not only will you need to make sure that you have enough cover, but you’ll also need to ensure it is affordable.
In this guide, we are going to give you some of our best tips to help you find the right home insurance!
Understand the Types of Cover
Did you know that when you take out a home insurance policy that there are two types of cover? Your policy will usually encompass both buildings and contents insurance, but it is useful to understand the difference. Buildings insurance covers the fabric of the building including built-in appliances and permanent fixtures. Contents insurance, however, covers your belongings that you keep inside the home.
Covering Rebuild Value
If you want to find the right home insurance policy, you must make sure that it will cover the rebuild value of your home. It is easy to make the mistake of covering only the market value of your property so you should try to avoid this. Make sure to be as accurate as possible when calculating this to cover yourself should anything go wrong.
Choose the Right Excess
Just like with any other type of insurance policy, you need to make sure that your home insurance has the right level of excess. This is the amount that you will need to pay if you make a claim. Often, the higher your excess, the lower the cost of cover. However, you must be able to pay the excess when making a claim so don’t be tempted to go high if you can’t afford it!
Cover Your Valuable Items
As we mentioned above, the contents insurance part of your policy covers your belongings. For this reason, you need to make sure that any policies you are considering will protect your most valuable items. These could be electrical items, jewellery or any other items that are high-value. You will need to set the estimated value of these items to make sure that you are covered in the event of an accident or break-in.
Always Compare Providers
You should never just opt for the first home insurance policy that you find. If you rush into this process, you could end up spending more than you need to in order to protect your home. You should compare the providers to understand what kind of service they offer. They might provide some extras, and this is the reason for a higher monthly cost. Of course, some might just typically charge more so this is something to be aware of!
Get in Touch
At GPD Mortgage Solutions, we can help you to find the perfect home insurance policy for your new home. We look at the best options on the market and provide you with a tailored approach. If you are on the hunt for a new home insurance policy, make sure to get in touch today. A member of our team will be happy to help!
