Home insurance: What to Look For

Shopping for the right home insurance policy can be a difficult task. Finding the best deal has never been particularly easy and then there are decisions like whether to have buildings and contents insurance from the same provider or whether to find them separately. As the market has become more competitive there are always more options available, the question is, do you actually want them?

The absolute minimum expectation with a home insurance policy has to be whether it gives you the cover you need, but sometimes you don't know exactly what you need. For example, some people don't think about the value of their clothes, but if you suffered a fire, your clothes might rank as one of your more valuable claims. Insurance companies like Legal & General offer a number of optional extras that might make their policies more appealing (check out their website for a full rundown of their building and contents insurance options). Here are some of the things on the market that you might want to consider.

Online discounts are very popular at the moment, they often apply for the first years premium only, but are a good reason to go direct to a company rather than through an internet comparison website. In terms of other discounts you may also be able to build up a no claims bonus which could make you significant savings in the long run.

Good emergency cover is very important. If you are strapped for cash and your pipes suddenly burst you may need additional financial help immediately just to get a plumber in to stop the actual leak. Some, though not all, companies offer emergency cover but you should check how much and whether it will actually make a significant difference.

Another thing that you need to check for is the replacement policy. Some companies will simply give you money, others will replace goods to a certain level, some will go so far as to replace new contents for the old ones that have suffered damage (within reason, of course).

If you are unfortunate enough to suffer severe damage to your home you may need a policy that will provide you with alternative accommodation until the damage is fixed. Keep an eye out for this, it's a standard on most policies, but if it's not included it's definitely worth asking to have it put in or to go somewhere else.

Be wary of things like PPI. PPI is Payment Protection Insurance and looks like a really good deal. It basically covers you financially in case you suffer from illness or find yourself unemployed. The Citizens Advice Bureau has labelled it a 'protection racket' whilst the FSA has handed out a record number of fines to companies who have overpriced their PPI. It can be a good idea, but you shouldn't pay extra for it, so check with an expert first. Other things that you can ask for include money for replacement keys and locks if you lose your keys, the contents of your freezer, or even credit card cover if you are a victim of credit card fraud or identity theft.