Top Mistakes Made When Buying Home Insurance


When you’re considering taking out home insurance, there are many things to think about – the value of your home against the outstanding mortgage is one of them. Overlooking the following points when looking for the best home insurance deals could prove costly, and you could see your premiums sky rocket. Always remember to seek the advice of an independent financial advisor when selecting buildings or contents insurance.

Price and Value Are Not The Same

Don’t get sucked into the false economies of home insurance – price is not the same as value. Indeed, you could save a few pounds by taking out a standard, run of the mill home insurance contract, but you could end up losing hundreds of pounds due to inadequate cover. Always insure your home for what it’s worth, never anything less, and in some cases a little bit more.

Don’t Be Blinded By Big Words

‘Special’, ‘Bespoke’ or ‘Deluxe’ insurance policies are no different from the hundreds of home insurance quotes on the market – so don’t be fooled by enticing words. ‘Specialist’ insurance doesn’t always mean costly or expensive, and you could get a great package for the price of a standard one. Comparing the market is essential when looking for home insurance, and in some cases it only takes 15 minutes of searching online to find better deals!

Never Under Value

Your home and its possessions are two of the most valuable assets you own, so never under value them. If your home is worth more than average, undervaluing it can cause serious financial headaches if you were ever to claim on your insurance policy. Yes, your premiums will be a lot lower if you under value, but if you needed to claim due to an unforeseen event, then the pay-out won’t be anywhere near as much as you need to make repairs!

Always get two opinions on the value of your home – one from your potential or current insurer, and the other from an independent advisor. This way, there’s no chance of your home being undervalued, and you can’t lose out on your home insurance if you were ever to claim.

Insurance Is Rarely All-Inclusive

If there’s one thing you must remember, never be ignorant with your insurance policy, because there’s a good chance that one or two eventualities won’t be covered. A standard policy is likely to include just the basics, and a cap of how much you can claim. Don’t think that just because you’re home in insured, that it’s insured from all types of damage.

In many cases, water damage is an optional extra that needs to be taken out separately from your home insurance. It may only cost a few extra pounds a month to cater your policy to cover all damages, so always make sure you know what you’re protected against.

Finally, don’t forget to do a bit of digging on your insurance company. If they have a track record of not paying out maximum value on their customers’ policies, then make sure you steer well clear.