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One of the most important things you need to do when you buy a property is to think about the insurance you want to take out. Whether you’re a first-time buyer or a landlord looking to expand your property portfolio, taking out insurance will be vital for your long-term future.
Why You Need To Take out Insurance
Insurance is what protects you against any potential risks that might occur in your property; for example, fires, floods or a burglary. The best thing about insurance is that there are a lot of options and no one set package. Instead, you can pick and choose what you want to be protected against.
How Does It Work?
The way in which insurance works is simple and is broken down into three steps.
- You choose a policy which is a document listing what you are and aren’t protected against.
- You pay the premium; this is the cost of the policy you have taken out. Based on the risks surrounding the policy you have chosen, the insurance company will calculate the premium you will pay, either monthly or yearly.
- If something happens that’s covered, you can make a claim. You will need to inform your insurance company. Once its all checked over, you will get the money back as stated when you agreed your policy.
Choosing The Right Insurance
There are different types of home insurance that homeowners can take out. Your house is more than just a home, so selecting the right policy and insurance will need to be a carefully thought out process.
This is a legal requirement for all those who own their house and are paying a mortgage. Building insurance is what covers and protects the cost of repairing and rebuilding your home if it is damaged. Including falling trees, natural disasters, fires and more.
Being a landlord means you will need to protect yourself against any damages. Especially those that happen to the property you are leasing out and any furnishings inside. This provides more than just normal home insurance. Instead, it covers things like loss of rent, unoccupied property cover, and malicious damage made by your tenants.
Looking after your belongings is just as important as keeping your house safe so you should consider taking out a contents insurance policy. Even if you are a landlord taking out contents insurance will cover you and protect the goods and furnishings that you have supplied in the property. Something to note though is that it does not cover general wear and tear only damage or destruction like a flood, theft or vandalism.
Home Emergency Cover
If you take out this policy, this will protect you in case of an emergency in which you need to get your locks, boiler, central heating, plumbing, or electrics fixed. Taking out this policy will ensure that the problem is dealt with quickly and fixed straight away. This is one of the most common policies to take out by homeowners due to the importance of fixing it quickly. However, when you take out your home insurance double check that it’s not already included within that policy.
Read more: High-risk homes: What drives up insurance