There is often much confusion between the difference insurance products and policies out there. Many policies do not cover for all eventualities and it is important to know the differences between policies. Today we break down the difference between standard home insurance and high value home insurance.
What Is Home Insurance?
A home insurance policy will protect your home and your belongings in the unfortunate event that they’re damaged or stolen. As an example, having home insurance can help pay for damage caused to your property by fire or a flood, or for replacing items that are stolen if you experience a burglary.
Do I Need Home Insurance?
Home insurance is not a legal requirement however in some cases you may be required to take out cover. Some examples of this will be if you’re taking out a mortgage on a property.
What Insurance Do I Need For My Home?
Home insurance is usually separated into two separate products these include:
contents and building insurance. You can choose to take this out separately or have a combined policy.
Contents insurance covers items in your home should they be damaged or stolen. Some policies also cover the contents in your home while I’m away.
Building insurance covers the physical structure of your home. This is essentially the bricks and mortar of the building and any permanent fittings.
Combined Home Insurance
You can take out both building and contents insurance with the same provider to reduce the hassle.
What Affects The Cost of Home Insurance?
- The property size and type
- Number of occupants
- The location of the property
- The security you have
- The cost to totally rebuild your home
- The cost of replacing all your possessions
- Whether or not you have any items worth over £1,000
- Any extra features you add to your policy.
What Does Home Insurance Cover?
- Burst pipes and water damage
What is the difference between standard home insurance and high value home insurance?
Standard home insurance covers your home and contents for a range of unfortunate yet disastrous situations. It covers a range of events such as fire, theft, water damage, damage from weather and also any accidental damage.
This may sound like it will only be just for celebrities and more but actually, high value jewellery insurance is perfect for anyone who is lucky enough to have assets and a lifestyle that needs that little bit of extra protection. It gives you more cover overall so you could claim for all of your belongings, and even more cover per item.
What Is High Value Home Insurance?
High value home insurance is a specialist type of insurance. It’s designed for people who specifically have high value homes and possessions. If your home and belonging are worth a lot of money as standard home insurance policies may not give you enough cover.
What Are High Value Home Contents?
High value home contents are usually any possessions that would cost more than for example £1,000. These possessions usually split into the two categories which are technology and valuables.
Technology includes items such as TV’s, computers, cameras and valuables include jewellery, paintings and any antiques. A lot of home insurance policies set a limit on how much they will pay on one single item which can go up to £2,500.
Some high net worth home insurance policies can offer unlimited cover, some of the higher limits can be up to a price of £12 million. Always check how much each insurer will cover you with.
High net worth insurance policies can cover up to £250,000 or more for your contents.
This will cover items like jewellery, watches, art or antiques. Check your high value house insurance policy to see if there is a single item limit. A regular content insurance policy could range from £1,00 to £2,500. On higher value homes this could be a lot higher around £5,000.
How To Avoid Being Uninsured For Your Valuable Items
It is very important to give your insurer an estimate for the total value of your possessions and also the amount you can claim is more than enough to cover the cost of replacing everything in your house and your actual home.
The best way to do it is to go from room to room listing your belongings before then calculating how much it would cost to replace them all. You don’t need to have a perfect figure but it does need to be a good estimate.
It is also important to note down everything in your home which is worth £1,000 or more and tell your insurer about those particular items.
Here Are Our Top Tips For Insuring High Value Items
- Ensure all of your fine art, antiques and jewellery are insured for their full replacement cost.
- If you buy or receive any expensive items contact your insurer to add them to your policy.
- The value of assets such as artwork can fluctuate, so conduct regular valuations to ensure you are not left unprotected.
- Keeping photographic evidence of your belongings will help the police to trace them if they get lost or stolen.
What Extra Policy Features Can I Get With Home Insurance?
This covers you for any legal expense that results from owning a home. This includes conveyancing, inheritance and probate.
Emergency add on includes call outs, replacement parts if the plumbing or heating breaks down or if you snap your key in your lock.
Away From Home
Standard content insurance will protect possessions when you are home, but this doesn’t always cover when you are out and about. Away from home covers damage, theft and loss when you are not there.
If you use a bicycle it is probably your pride and joy. This specific add on will protect your bike from theft when you have locked it up somewhere, for repairs or if you have an accident.
Accidental damage will protect your possessions from everyday mishaps and will also help if you have a costly DIY error or break a window.
Did you know that gardens aren’t always covered under standard home insurance. A number of Insurers will cover your garden furniture, sheds, outbuildings, garages and any boundaries. This is important to check with your specific insurer.
What Do I Need To Get A Quote?
- Details about your home – Type of property, number of rooms, when it was built, the roof type and if there are any trees nearby.
- Information on occupants – How many people live in the property and when they are usually at home. They may also want to know if anyone smokes.
- Security Information – If you have a burglar alarm, types of window and door locks you have.
- The rebuild cost of your home – The cost of rebuilding your home from scratch if it were destroyed.
- The value of your home’s contents – The estimated cost of replacing your contents if they were destroyed.