Once you've made the sensible step in investing in home and contents insurance, you'll receive a document entailing the terms and conditions of your policy. These can contain a lot of jargon that can be difficult to get your head around, so read through our guide to find out what everything means.
What's covered by home insurance?
Home insurance protects the policy holder from having to pay out potentially huge sums of money for any structural damage to their property. It is important to read any official documents thoroughly to make sure you fully understand what you're covered for.
DEFINITIONS: Reading the ‘definitions’ section of your policy wording will clearly explain what the words mean within the policy you have purchased. If you are still unsure, it is best to speak to your insurance broker to ensure you are clear on the terms and are covered.
Buildings and contents
The term 'buildings' in many official document refers not only to your home, but to any other features such as a shed, a greenhouse, hedges, pipes, cables, drains, patios and even swimming pools that are on your land.
Cover your contents
It isn't just the outside of your property that can be insured against damage. Some other possessions will be included in your home insurance, while you can also purchase separate contents insurance.
But what does 'contents' refer to? A whole range of things can be protected against loss or damage with a contents insurance policy. Household appliances, satellite dishes, garden equipment, wheelchairs and valuables such as jewellery and ornaments can all be covered through such a policy.
You can take out extra cover on your contents insurance for things such as equipment for business use or sports, allowing you to protect a wider range of possessions. These clauses in your policy may insure your sports equipment and kits, computers, printers, photocopiers and office equipment.
Money and credit cards can also be covered, along with a number of other financial products such as premium bonds, cheques, gift vouchers, savings and share certificates.
Worried about taking things out of the house? Don't be, as insurance is available for personal items of jewellery, bags and anything else you may carry with you on a day-to-day basis.
It is also important to understand what isn't covered on your contents insurance to prevent disappointment in the future. If you're lucky enough to own a boat or a caravan, these will need separate cover.
Who is covered by my policy?
Throughout a home insurance document, the phrase 'your family' may be used. This refers to not only your husband, wife or civil partner, but also your children and anybody else who may be residing with you, such as foster children. However, lodgers are not included in this and will need an insurance policy of their own.
If you have any furry friends living in your property, you will need to invest in Pet insurance as they will not be covered Home insurance policies.
Now that you understand what is included within your policy, there are just a few other terms you may come across that need explaining. 'Excess' refers to the amount you must pay before you can receive the benefits of a claim, while an 'endorsement' is a change in terms agreed by both the policy holder and the insurance provider.
You may notice the term 'period of insurance' being used too - make note of how long your policy lasts for and ensure you invest in a new one to keep yourself fully insured when the time arises.
Computerquote Insurance - here to help
We understand that insurance can be complicated and confusing at times. That’s where we come in. We can help you find the right cover for your needs from our panel of UK insurers. Call us on 0800 389 9949 or 023 9224 7870 or get a quote online.