Truth, Lies and How to Buy Home Insurance

Did you know that the UK's top insurance companies are thinking about you right now?  It's true.  The UK home insurance market is incredibly competitive.  Insurance companies are looking for new ways to communicate with you more directly and efficiently.  You can see the results of their new strategy in a variety of online websites like insurance.co.uk.  If you're ready to buy home insurance, you can comparison shop among several home insurance companies and have a collection of quotes sent to you directly instead of running around town visiting this or that office.

But there's something important about all of this that you should keep in mind.  In order to streamline the quote process as much is possible, many insurance companies are making certain assumptions about you, the consumer.  Most of the time, these assumptions will probably be correct.  But if they're not, your quote might be off.  Worse yet, if the transaction is completed and you buy home insurance without correcting wrong assumptions, the insurance company may later decline to pay your claim.

So just what are they thinking about you?  First of all, they are assuming that you are older than 18.  If you're over 25, you may get more attractive rates.  In general, the older you are, the better your rates will be.  Insurance companies know that, statistically speaking, your likelihood to make a claim declines as you get older.

The insurance company is also assuming that the household for which you intend to buy home insurance is your main residence, and that only you and your family are living there.  They base their quotes on the belief that the primary use of the building is residential.  it's okay if you're doing some office work out of your home, but if you're doing any manufacturing or running a retail store, you'd better get a different kind of policy.  They also assume that you won't leave your home unoccupied for more than 30 days at a stretch, that it's in good repair and that you intend to maintain it that way.

One condition that UK home insurance companies and homeowners alike are concerned about is subsidence.  Subsidence refers to the process by which your home becomes structurally unsound because of changes in the ground upon which it is built.  Subsidence is often connected with the drying and shrinking of ground that takes place when it has a high clay content.  This is especially likely in homes built on the clay belt that runs through London and southeast England.  Homes built in areas at risk for subsidence damage usually have higher rebuilding costs, and as a result, higher insurance premiums.

It can also be difficult to buy home insurance if you live in a flood-prone area.  You might find it easy not to mention that your neighborhood is prone to flooding, but they'll probably figure it out from your postcode.  If you happen to buy home insurance without owning up to the flood danger, the company could refuse to pay your claim later on.

Considering the possible dangers that we face in today's world, it's really essential to buy home insurance.  If you're still paying the loan for your home, your mortgage company will require that you buy home insurance.  Even if you consider home insurance to be optional, try to imagine how you would rebuild your home or replace your collection if it were destroyed or lost. Is it really worth taking a chance?