Home Insurance
How valuable is your home and its contents? Chances are they are the biggest investment of your lifetime and as such it’s vital to protect them – which is where home insurance comes in.
Here we look at how home insurance works, the cover features to look for and how it can help you with carpet damage.
How does home insurance work?
Home insurance covers two areas that can either be bought separately or combined:
- Buildings insurance: Cover for the structure or your home, its permanent fixtures and fittings, and, depending on the policy, it may also protect outbuildings, underground pipes and cables and glass in external doors and windows. Typically buildings insurance protects your home against risks such as flooding, fires, theft, malicious damage, subsidence and floods.
- Contents insurance: This covers the non-permanent items in your home, including carpets. Typically a policy will protect you against you against vandalism, floods, fires, storms, water leaks and theft.
Not all home insurance policies are the same and you should read the terms and conditions of any policy that interests you carefully. In particular, look out for policy exclusions – these are circumstances in which you will not be covered; the sum insured, which is the total amount you can claim following an insured event; and specified item limits – these are individual item limits and are usually set at around £1,500.
In terms of contents insurance, also look to see whether the policy offers ‘new for old’ cover or ‘wear and tear’ cover. New for old cover offers a brand new replacement for items that are damaged in insured events; whereas wear and tear cover will deduct a percentage of what you paid for the item for depreciation.
How does home insurance apply to carpet damage?
Carpets are usually included on the contents aspect of a policy – when taking out a policy you should consider what risks you are protected against and the levels of cover that apply.
If your home suffered a fire or a theft, your carpet would normally be covered as standard. However, in cases of accidental damage you should carefully examine the policy’s terms and conditions. Many home insurance policies only protect electrical items against accidental damage and you may need to take out extended accidental damage cover to protect your carpet. This may involve paying an additional premium – although some insurance companies do offer extended accidental damage cover as standard.
Check the terms and conditions for exclusions too – for example, you may not be covered against accidental damage caused by a child or pet. Similarly, some home insurance policies now exclude ‘escape of water’ from their policies because claims are so common. This means that if your home was flooded as a result of a burst pipe you might not be able to claim for damage to your carpet.
Is there anything else to consider?
For minor spills and other damages, consider all of your options before making a claim – remember that home insurance claims can cause premiums to rise and there may be an excess to pay. Here are some considerations if you damage your carpet:
- Professional cleaning: If you do have a spill or stain and can’t deal with the problem yourself, then what about a professional? Consider whether professional cleaning could remove the stain/spill and then shop around for quotes in your local area.
- Do you have a warranty: You may have taken out a warranty when you bought your carpet – and it is worth making a claim on this rather than your home insurance to avoid premiums rising. Check to see how long the warranty lasts for and what risks it covers you against.
- How to make a claim: If you decide that a home insurance claim is necessary then do all you can to ensure the claim runs smoothly. This begins even before the insured event occurs as you should retain receipts for items in your home and take photographs so the insurer knows your claim is honest. Then when the insured event occurs, contact the provider as soon as possible. You will normally be asked to fill out a claims form and a loss adjustor may be sent out to assess the claim so don’t attempt to dispose of the carpet without the home insurance company’s approval.
How to lower home insurance premiums
When shopping around for home insurance you should consider not only the quotes but also the levels of cover available – however, here are some tips to keep your premiums in check:
- Combine policies: Taking out buildings and contents insurance with the same provider usually earns a discount.
- Increase security: Reduce the risk of theft by installing security devices such as an alarm and time-switch lights.
- Increase your voluntary excess: The excess is your contribution to a claim – raising it can lower premiums but be careful to keep it at an affordable level.
- Pay annually: Many insurance companies charge interest on monthly payments, so consider paying premiums annually.
- Prevent fires: Smoke alarms and fire extinguishers can prevent fires from getting out of hand and are usually recognised by insurance companies.
