Home Insurance not seen as a Must Have
It these present economic times, its a worry to learn that many people do not see insurance as an essential purchase. According to a survey by the Co-operative and housing and homelessness charity Shelter, 70% of people are worried about their cash flow, and this increases to almost 75% among people aged 24-35. The research also shows that nearly one third of Brits are at present struggling to live on what they are earning.
For many, home insurance is now seen as a luxury item, and true, it can be quite expensive depending on the area you live in. Many people genuinely believe It wont happen to me, but alas, this is not the case and each year countless people are victims of Fires, Floods Burglaries and a whole host of other events. The fact is, that in economic, down turns, home insurance is more important than ever, and should definitely not be taken out of the household budget.
What many people also do not realise, is the actual total cost of what can at first appear to be a very minor incident, burst pipes and flooding claims in particular often end up being five figure losses. As well as the clean up and reinstatement work, often the homeowner has to be re-housed and this all adds to the eventual bill.
Apart from the fact that having building insurance is a condition of a mortgage, having insurance in place should be seen as a necessity, who can or honestly wants to dip in to their savings to pay for unwanted and unforeseen property damages. Imagine a serious event such as a fire, without home insurance in force; your lender will be looking to you, to reinstate the property.
As well as a wide range of perils, home insurance polices usually cover Public liability Insurance, these claims can also prove to be substantial if someone is injured on your property. The list of eventualities that can befall a home owner is long and with the erratic weather we now seem to be experiencing, floods seem to occur at almost any time of year.
If you have received your latest home insurance bill and are thinking of allowing your cover to lapse, think again it could be a very costly decision. Why not phone around to see if you can obtain a cheaper premium, or perhaps discuss legitimate ways of reducing your premium, sometimes, having a chat with your insurance provider may reveal that you are eligible for extra discounts (such as security or safety features that your insurers were previously unaware of). Also, most insurers will have a direct debit option, enabling you to spread the payments over the term of the contact.
One definite no no, is to reduce your sums insured, in the short term this may give you a cheaper home insurance premium but in the event of a claim you will probably not receive the full value of your claim or worse.