Home Insurance FAQs

Q: What does ‘new for old’ mean, surely you will always replace lost goods with new ones?

A: While it’s true that you may want to buy new things to replace stolen or damaged ones it depends on your policy as to whether you can afford to.  In most cases if you lose an item the insurance covers what it cost to buy less some depreciation due to age – which may not be enough to buy a new item.  With a ‘new for old’ policy you get the money to buy a new version of the lost item even if you have had it for a while.

Q: I’ve heard that you can cut the cost of buildings insurance by not insuring the land, is this right?

A: The value of the land that your house stands on is calculated to be around 1/3 rd of the total value of the property.  Some people decide that if there is a disaster the land will remain intact even if the house is destroyed, so they only need to insure 2/3rd of the value.  Although this may seem logical it is always worth thinking very carefully about any decision that could potentially leave you under-insured. 

Q: Will a home contents policy cover all my jewellery, I have quite a lot?

A: Check the policy for total cover and expensive items cover.  Most policies will ask you to specify expensive items and you may need to increase your cover.  If you are a jewellery collector it is very unlikely that a standard home contents policy will cover you for loss.

Q: If my roof leaks will it be covered by buildings insurance?

A: It depends how the leak occurs.  If due to storm damage a leak is caused then you may well be covered, if however the leak occurs due to general wear and tear and the age of your property then it is unlikely to be covered by your standard buildings insurance.  You can obtain add-on policies that cover emergency repairs.

Q: I thought all home contents insurance was pretty much the same, how could I be under-insured?

A: Home contents policies revolve around how much your premiums are compared to how much cover you get for the money.  If your home contents policy gives you £50,000 worth of cover, but to replace all of your possessions and furnishings would cost £100,000 then you are under-insured.

Q: I rent a flat and I know my landlord has insurance so do I need any?

A: Your landlord will have buildings insurance to cover the structure and he may have liability insurance for other risks but he is unlikely to have taken out contents insurance.  Your possessions are your responsibility and as a tenant you can take out a home contents policy.

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