A Guide To Home Insurance

damage caused by those events specified in the contract. Alternatively, choosing the ‘accidental damage’ option covers consumers against any accidental damage, so long as the damage is not excluded by the policy terms. This highlights the importance of consumers understanding thoroughly the terms of their contract, so as to avoid disappointment and confusion when making a claim.

Which type of cover to choose depends upon the circumstances of the individual.  ‘Accidental damage’ cover is likely to be the more costly, but may be the better choice for those who are more liable to damage and need greater cover, for example people with expensive and fragile possessions. Nevertheless, it remains a strictly individual decision because some ‘specified perils’ policies include accidental damage cover for certain items too.

Home Insurance related terms explained

Coverage – This is the level of protection provided to you under your insurance policy. Coverage lists the perils, properties, locations etc that you are insured against. For buildings insurance, it is recommended to insure your home for the amount it would cost to rebuild it from scratch, which does not equal its market value. Likewise for contents insurance, it is advisable to insure the contents of your home for the amount it would cost you to repurchase them new.

This is important because if you insure your house for a certain amount, you will not receive any