Buying home insurance: beware the pitfalls
If your house is damaged or destroyed, then buildings insurance should cover the cost of repair or even rebuilding it. When you purchase your home, responsible lenders will insist that you take out buildings insurance as a condition of your mortgage and It is unlikely that you would be accepted for a mortgagewithout it. The therefore need to consider:
(1) • What risks should you look for when you buy building insurance?
(2) • What are the advantages and disadvantages of switching insurers, particularly if there is a possibility of future claims?
(3) • How can you protect against having to make a claim?
When you shop around for a new buildings insurance policy, you may be tempted by price. But it is important to know what risks may or may not be covered under the policy and compare the levels of cover policies offer. Whichever insurer you choose, your buildings insurance should cover the full cost of rebuilding your house, including demolition, site clearance and architects’ fees. A good buildings insurance policy should insure your property against the risks of loss or damage caused by:
(a) • Fallen trees, lampposts, aerials or satellite dishes;
(b) • Fire, explosion, storms, floods, earthquakes;
(c) • Frozen and burst pipes;
(d) • Subsidence;
(e) • Theft, attempted theft and vandalism;
(f) • Vehicle or aircraft collisions.