Congratulations! You’ve made it through the labyrinth that is buying a new home. Now that you’ve got your new keys burning a hole in your pocket, you’ll need one more thing before you’ve got all the boxes packed and unloaded in your new place - home insurance.
Home insurance is comprised of 2 parts - buildings and contents. The walls, roof, floors, and anything that’s made up of the structure of the house make up the building. These are covered in the case of a storm or fire with building insurance. What fills your house - including televisions, clothes, carpets and furniture are contents. You can claim for these if they’re damaged in a flood or fire in the same way as the building, but they’re also covered in the case of theft or loss.
Make sure you’ve got your home insurance policy in place before you take responsibility for the property. In some cases, this may be a legal requirement. As far as the contents of your house, don’t wait until your moving day to make sure it’s covered - our policies cover your contents should they be damaged in transit provided they are packed and moved with a professional mover.
When buying home insurance, you'll have to configure a “rebuild value figure” on your home. This is the cost to completely rebuild the house. Keep in mind that this isn’t the same amount that you would have paid for your home, as that includes the cost of the land as well.
Something you should include, however, is the cost of replacing the contents of you home. Estimating your current possessions can be a bit tricky, as you’ll need to remember that this means you’ll need to determine how much things would cost to replace rather than how much they are currently worth. This is called the ‘sum insured’.
Contents insurance will depend mainly on the location of your new home, the final amount calculated as your ‘sum insured’, as well as any extras you choose to add on (such as accidental damage cover). You will also save on your premium if you’ve never made a claim with a previous insurer. This is known as a no claims discount (NCD).
In terms of buildings insurance, your premium is mainly related to your home's rebuild value, and whether you live in an area prone to flooding. Again, this is the insurer taking a view on how likely you are to make a claim and how much it would cost if you do.
If your home insurance is a bit higher than you’d like, there are a few extra tricks to getting a lower quote. From bundling your home and car insurance to insuring some extra burglar and fire alarms, we’ve pulled together another post to help you save as much as possible on your new home’s insurance.