Residential Property Insurance

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The UK Residential Property Insurance Market

A residential home is the largest investment most people make. Having the right insurance on the home is critical. If thereís too much insurance, itís a waste of money. If the house is underinsured, the owner runs the risk of not recouping all of the losses in the event of damage.

One of the most common methods of calculating the value of a house is through the property valuation report, which will list the insurable value of the property. This amount represents the total replacement value in the event of a total loss. The amount excludes the value of the land and foundation.

If a home owner is looking to save money on insurance, the easiest way is to eliminate optional extras. Those extras are additions to the standard policy that are available at additional cost. For instance, a home emergency cover will insure against emergency damage to appliances and covers the cost of a skilled repairman.

Before eliminating these extras, it is wise to check if there are other ways of saving on a residential property insurance policy. A good alarm system can be worth a policy discount. Some policies offer lower rates for smoke alarms and fire extinguishers. The idea is to get the best available coverage at the most cost-effective rate.

Another type of residential property insurance is for property owners who let the property to tenants. Such a building is at risk from theft, fire, malicious damage and public liability. Further covered items include equipment breakdown, business interruption and personal accident. Additional extra coverage might include loss of rent and landlordís contents.

The above residential insurance policies are applicable only to occupied properties. Such standard policies would not apply to property that is unoccupied for more than approximately one month. For long-term unoccupied property, an Unoccupied Property Insurance policy is needed. Since unoccupied property is a greater insurance risk, the policy premiums will be higher. Such a policy would cover building and content insurance and public liability insurance for building and content.

If the unoccupied property is commercial, it would require an unoccupied commercial property insurance policy.
Insurance can be expensive. It is, however, a necessary expense to protect expensive property. The best way to insure good value is to shop around for the best buy.

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