What is the ‘excess’ on a buildings and contents policy?
The excess is the amount you pay towards the damage or loss when making a claim Buildings Insurance offers protection should anything untoward happen to the main structure of your home, such as a fire, storm damage and subsidence.
There is not a legal requirement to insure your home, but if you have a mortgage on the property, it is likely your provider will insist you do.
In any case, there is a good chance that at some point down the line you will need to make a claim against damage to the walls, floor and roof of your property.
Buildings insurance provides security to yourself and to the lender.
Contents insurance essentially covers all the belongings inside the home unless otherwise specified in the policy plan.
Standard contents insurance includes white goods i.e. washing machines, dishwashers and fridge freezers. It will also include carpets, furniture, curtains and blinds.
You can also add personal belongings e.g. bikes, jewellery and personal devices etc. up to a certain value
Often these policies are taken as a joint Building & Contents policy but can also be taken separately.
Insuring your home for the right amount of building insurance
The required amount of buildings insurance cover is not based on the value or selling price of the home but on the rebuild cost of the building. This is often much lower than the value of the home.
This is often calculated by the insurer based on the age, location and property type.
Insuring your home for the right amount of contents insurance
This will be very personal to each customer as it is based on the value of their contents, and tastes and budgets obviously differ significantly from one homeowner to the next.
When insuring contents you should value each room, including furniture and belongings you would want replaced in the event of them being damaged, lost or stolen.
For single items such as jewellery or furniture, insurers will normally ask for a maximum value of the item in question. This is typically around £1,500-£2,000, but some policies offer more.
Outside of this, items will need to be specified separately
Will accidents in the home be covered under contents?
What is included varies depending on which provider you use.
But, generally speaking, accidents are not included but sold as an optional extra instead This type of cover is referred to as ‘accidental damage’ and it can cover your possessions as well as for your building.
Accidental damage can cover the cost of repair to damage that was sudden and not done on purpose, such as a smashed window or a stained carpet.
Please speak to a Home Group Advisor if you need help navigating your way through the options.
on the policy.
There are two separate types of excesses:
- Compulsory excess is the amount set by the insurer that you must pay when making a claim.
Voluntary excess is the additional amount you are willing to pay when making a claim to lower the premiums. If you are willing to pay a higher voluntary excess, the lower your premiums will be.
