iQep: Insurance & Finance

The terms and expressions used by insurance companies on their policies can sometimes appear baffling to those unused to dealing with them.  Here we present simple explanations for some of the more commonly used jargon and expressions used by the insurance industry.

Index Linked – This mean that the sum of money which your policy has insured you for will be adjusted each and every year in accordance with inflation.  This ensures any payout will match inflationary costs.  Inevitably, this usually comes with an increase in the premium that must also be paid to continue with the coverage.

Insured – This refers to the person who has taken out the insurance – i.e. you, and any members of your family or other people permanently residing in the home that you have taken out the insurance policy on.

Insurer – This refers to the insurance company with which you have taken out the home insurance policy in order to protect your home, and whom you pay a premium to in order to continue and maintain that guaranteed protection.

Legal Liability – Refers to the obligation you may be under to provide financial recompense should a person be injured on your property as a result of your own personal negligence. Most comprehensive home insurance policies include protection against legal liability, although it is always best to make certain.

Market Value – In terms of building insurance, this is simply the amount of money that you could expect to receive for your property should you put it up for sale on the housing market today. 

Generally speaking the rewards may far outweigh the risks when it comes to switching home insurance providers.

There are more insurance providers than ever these days.  The competition is intense and as a result the prices of home insurance policies are more affordable than ever.  In a bid to beat the competition, providers will offer enticing home insurance quotes to gain your loyalty and encourage you to switch to their policy.  You could save a lot of money by switching providers regularly.  In addition, with the amount of price comparison websites available, it has never been easier to compare home insurance policies to see just how much you could save.

However, while the prospect of a cheaper home insurance quote can be appealing, there are three important points to bear in mind.

The first is that while it is not difficult to switch providers, you must check to see how quickly it can be done and whether there are any penalties or fees for leaving your existing contract early.

The second is that you must make sure that you always have home insurance in place.  Never cancel your current home insurance policy until your new one is in place.  Always be sure of the dates involved.

Finally, while the temptation may be to complete the switch of home insurance as quickly as possible, take care when filling out the necessary details.  Any incorrect information, however unintentional, could end up invalidating any claim you may make, so take your time to get it right.

In times of financial difficulties, many of us might be tempted to cut back on house insurance.  However, such action could lead to unforeseen problems in the future, which might also bring about added financial strain on the household.

Household insurance helps to pay for the loss or damage of any item in the property.  It goes towards the cost of replacing items that are completely destroyed and pays for the repair of any that can be saved.  It also covers the cost of repairing damage to the structure of the house, which could prove extremely costly.

High winds could cause tiles or slates to be blown from the roof of your home; something that you may not become aware of until heavy rain causes leaks into the house.  A roof repair specialist would probably charge several hundred pounds to fix the damage, while there would be the additional cost of fixing up the inside of the house.  Taking account of water damage to ceilings, walls and carpets, just one incident could cost well in excess of £1,000 to rectify.  Buildings and contents insurance is there to cover the cost of precisely this type of damage, with little or no excess.  As you can see, it would clearly be a false economy for a family trying to save money not to renew their house insurance.

House insurance quotes are easy to obtain; a simple search of the internet will provide some really competitive offers.  Use one of the many price comparison websites to help you select from the huge number home insurance policies on the market and you will soon be in the perfect position to choose the one most suitable for you.

Household insurance policies start from just a few pounds every month, but are priceless for the peace of mind they bring.

Combined buildings and contents insurance is a type of home insurance policy where the buyer purchases buildings insurance for the home itself and contents insurance for the contents of the home in a single policy.  The advantage of doing this is that the buyer has only one policy to take care of.  Most insurance providers offer a significant discount on home insurance quotes for this single policy.

The buildings insurance will protect your home against accidental damage from a variety of things such as storms, floods, fire, and damage caused by the emergency services.  It will also pay out if you require new accommodation, either on a permanent or temporary basis.

The contents insurance will protect the contents of your home against damage, loss or theft.  The majority of items in your home should be included in the contents insurance cover.  This would range from money and gifts, to jewellery and the contents of your freezer.  Be aware that there are usually limits to how much you can claim for an individual item.

While it is usually an attractive financial prospect to buy a combined buildings and insurance policy, great care must be taken.  It will certainly not suit everyone.  If you believe that you need specific protection not covered in a combined policy, for example to cover an old and valuable piano against damage, then you are advised to compare the market and see which policies suit your individual needs the best.  There is a perfect policy out there for everyone.

When searching for home insurance quotes, people are always looking for the best deals.  This means finding the home insurance policy that ticks all the boxes while paying the lowest premiums.  A little bit of work on your part can ensure you find the best deal for you.

It is essential that you shop around for your buildings and contents insurance policy.  This enables you to compare and contrast different providers.  This is now a much simpler process as the information is readily available on the internet.  It is essential that you search for alternative quotes when your policy is up for renewal.  While it may seem easier to just renew with the same provider year on year, you could actually be costing yourself money.  All you have to do is search online and you already have a head start since many companies will discount your premium by 10% when you purchase your policy on their website.

It is also advisable that you purchase a joint buildings and contents insurance policy. Buying separate buildings insurance and contents insurance will undoubtedly cost you more.  It is also easier to keep track of your cover when you have a joint policy with one provider.

You obviously have the option of paying for your policy annually but most people find it more manageable to pay in monthly instalments.  However, what you may not realise is that interest is usually levied on monthly payments.  Therefore, if you can afford to pay annually it will save you money in the long term.