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Buildings and contents insurance are both types of home insurance. Buildings insurance covers you against financial losses if the structure or permanent fixtures of your house are damaged, and contents insurance is for your belongings that would go with you if you moved. There are many different levels of cover, so here are some things to be aware of when choosing a policy.

It is essential that your building insurance policy gives you cover for the full cost of rebuilding your property and not just the market value. This will protect you from fluctuations in the property market and will sometimes reduce the premium. The land your home is built on is unlikely to be damaged even if your house is destroyed by fire or flood. Rebuilding a house on the existing plot is often less expensive than buying another. Remember that similar houses may be worth different amounts even if they are only a few streets apart, but the cost of rebuilding will be the same.

Your contents insurance must give enough cover to replace your belongings, so be careful not to under insure. This means that the maximum your insurer will pay is not enough to cover your losses. Your premium will increase with the amount of cover, but it would be a false economy to under insure because if you were unlucky enough to make a claim you would lose out financially.

To get a realistic idea of how much cover you need, make a list of your possessions, and dont forget to homemade items and gifts. Work out the approximate value of each, and think how much they would cost to buy new. It is worth considering paying extra for a new for old policies so that you get the cost of new replacement items, otherwise you will only get the value of your old used one which could be a lot less.

You may decide to opt for cover for the things that you take out and about with you. Mobile phones, laptops and jewellery can be covered by your house insurance even if they are lost or damaged away from the home. Also think about the contents of your garden, greenhouse and shed, are your tools and garden furniture covered?

Not all building insurance offers the same level of cover. Along with your house, check whether your buildings insurance covers you against damage to greenhouses, sheds and garages as these items can be costly to replace.

If you build an extension, convert your loft or make any other big changes to your home make sure that you tell your inSurance company and update your policy. If not you could lose out if the improved aspects of your home need to be repaired or rebuilt.

Look out for discounts if you buy your contents and buildings insurance from the same provider. Do shop around and remember that the cheapest cover may not be the best value, and for a slight increase in premium you may be very grateful for the additional cover should you be unlucky enough to need it.

Car insurance is a necessary expense if you own your own vehicle. However, even though the cost of your premiums depends largely on your car and how old you are, there are things you can do to keep the cost as low as possible.

The best place to start when you are looking for car insurance is the internet. Insurers will typically give you a discount of around 5% if you do this as it makes processing your application easier. It will also help you to shop around to get the best deal. All insurance companies use different formulas when working out your premium, so it is vital to try different companies. Putting your details into a comparison website will show you the alternatives on offer.

Most insurance providers offer not only car insurance but also buildings and contents insurance for your home, and many will offer extra discounts if you purchase more than one product from them. This could earn you some decent savings across the board on all your insurance policies. Similarly, if you pay your insurance premium in full you can avoid paying expensive interest charges that will be added if you pay it in instalments. Some companies charge as much as a 15% interest rate on instalments, therefore the saving will be significant; you may even receive a discount if you pay in full. You can also save money by increasing your voluntary excess.

Reducing your annual mileage can reduce your premium, so as most insurance companies offer quotes for around 12,000 miles per year, if you work out how many miles you will travel and it turns out to be lower than this you may be able to get a discount. It is important to be honest about this as your insurance company may want evidence. It is important to make sure your vehicle is kept safe and secure: if you have an alarm, immobiliser or tracker fitted, savings will be available to you. If you take the Pass Plus programme you’ll demonstrate to your insurer that you are a skilled road-user. This will help get you lower premiums as the chance of an accident will be reduced and so will the likelihood your insurer will have to pay out. This is why it is also important that you keep your licence clean.

If you have a record of no previous claims you will benefit from a better rate on your insurance. In addition, by adding a spouse or an older driver to your policy you’ll be able to benefit from lower premiums. Remember that by law you are required to have an insurance policy if you use a car, but the minimum cover you must have is third party insurance. Though this will not cover damage to your own vehicle in the event of an accident, it will ensure you pay lower premiums. If you do all this, you can get a better deal on your car insurance.