When you are buying a new house, whether it is a first time small starter home to get you on the housing ladder or a multi million pound mansion, a family home or a bachelor pad, you need to take the cost of good home insurance into your calculation on top of the cost of the house itself, the mortgage set up costs, the conveyancing fee and the other fees.
Many people make the mistake of scrimping on their home insurance to save a few pounds, but regret it dearly when something happens and they find that they are not covered.
When you get your quote, understand exactly what is covered under the insurance and what types of accident are excluded, such as flooding or other, as it can really vary across insurers or across policies. Whilst one policy may look like a bargain, the chances are that something might be excluded so check carefully.
All mortgage lenders will insist that the building is adequately insured in case the worst happens and it has to be rebuilt, but many people fail to have enough cover for their contents – and some people do not have any cover at all which is extremely dangerous.
Make sure that you have contents insurance which is enough to cover all your big ticket items and jewellery plus all the contents of your home.