Home Insurance Guide – 6/8

In part five of the moneysupermarket.com guide to home insurance we began to look at some ‘special case’ scenarios with landlords home insurance and tenants home insurance and cover for flood risks. In part six we continue to examine the specialist options available.

Student possession insurance

Students, when compared to regular homeowner and renters, are usually seen differently by home insurance companies.

Student possession insurance is tailored to meet the students’ needs as they often have a lot of unsecured possessions and are considered more vulnerable to theft. In addition they are regularly away from home for a long periods making their possessions even more vulnerable. Student policies will usually cover high-risk items such as CD players, games consoles, etc as well as the standard fire, flood, vandalism, theft and accidental damage.

What is also worth considering is that many students’ possessions will already be covered on their parents’ policy. Parents can make an immediate saving by avoiding duplicate cover.

Self build insurance

When building a new home there are a number of factors worthy of consideration – including serious injury or anything that incapacitates the self-builder. Here is a guide to some of the things to consider:

• Public liability insurance – Insure against potential claims from members of the public.
• Existing structures – This insures the lenders interest is noted.
• Insure the actual building work and materials – Contractors All Risks (CAR) insures the structure and provides cover for ‘in transit’ materials.
• Employers liability insurance – Anyone, including friends and volunteers who are injured working on the home could make a claim. This policy dovetails your liability as an employer.
• Further liability insurance – Protection against injury to any third party, for example personal accident cover.
• Contractor/supplier disputes – Legal expenses cover can help speed up disputes over sub-standard work or materials.

Listed buildings insurance

There are more than 500,000 listed buildings in the UK but many home insurance brokers do not cover their complexities and a lot of homeowners under insure their property. In the event of a catastrophe, English Heritage insists on a full reinstatement if more than 40% of the historic fabric has survived. Consequently, there are a number of factors to consider:

• Reinstatement Cover – Due to the English Heritage mandate there is a need to consider how much it would cost to rebuild the entire building using like for like methods and materials.
• Valuation – A proper valuation is essential from historic building experts.
• Specialist Insurers – Most home insurers will just look at the rebuilding costs from the exterior, which is not acceptable for a listed building. A specialist insurer is required.
• Documentation – Become involved in the process so a resolution of a claim with the home insurance company is easier to reach.
• High Net Worth Cover – High net worth cover will usually cover buildings with a value of more than £250,000 and contents in excess of £75,000.

Holiday home/expatriate insurance

If a person is away from their home for a long period of time staying at a holiday home, their home insurance policy can often be deemed void. Some home insurance companies will now offer cover for holiday homes in selected countries, based on how long you spend there, etc. Expatriate home insurance is also available with selected companies for people who relocate to Spain and other countries.

Working from home

If you work from home it is vital to look at the range of cover options available from your home insurance policy. Some insurers automatically cover up to £5,000 of home office equipment. This is likely to be adequate unless you use specialist equipment or employ other people, in which case you will need to speak to your insurer about the possibility of gaining specialist cover. You could need extra cover for more valuable items, and items that are particularly susceptible to theft, such as laptops, could need a separate policy. If your computer is stolen and you make a claim your home insurance premium could go up as a result, meaning it is generally worthwhile to insure these items separately.

In part seven we take a look at ways to cut the cost of your cover.