Being insured against life’s mishaps provides a warm sense of security. Whilst some policies could easily be viewed as a peace of mind for the wealthy, for most of us, insurance is something we look for when it is a legal requirement to have it. That is mainly because of the cost involved in taking out an insurance cover. Interestingly, many people who talk about the high cost of insurance cover get their insurance cover renewed automatically. Many surveys show that 32% of drivers let their car insurance policy auto-renew and often end up paying more than £800 than they should. What it means is that if you shop sensibly, insurance covers can actually help you in so many situations.
Here are some of the common insurance must-haves.
Home Insurance Cover
Home insurance generally covers the cost of rebuilding or structural repair in cases of damage caused by an accident such as a fire or natural disasters such as floods or earthquakes. It does not cover typical maintenance or renovations. Home insurance is also limited to occupied property. If a property is vacant for more than 2 months than any damage caused to it is not covered by home insurance.
Home insurance is not just an option, it is a necessity. Houses are built at a huge cost and not insuring is simply foolishness. Additionally, home insurance is a legal requirement when you apply for a mortgage. So if you want a mortgage for building a home or for buying a property you essentially need to take out home insurance.
To get a complete insight into what is covered by home insurance and what are its limitations read the complete insurance policy carefully.
Car Insurance Coverage
There are three types of cover in car insurance:
- Third-Party Cover: Any injury caused to the passengers in the car other than those included in the insured cloud is covered under this type. It also includes damage caused to the property of the passenger but does not pay out if your car is stolen.
- Third-Party, Fire and Theft Cover: This car insurance cover is similar to third party cover but it also includes cover if a car is stolen or catches fire.
- Comprehensive Cover: Comprehensive insurance pays for any damage caused to the car or its passengers by any means while in the car.
Car insurance is a legal requirement. You are not allowed to drive without it. The minimum is third party insurance to cover the costs of treating injuries. The most expensive car insurance is for new drivers and young adults.
GAP (Guaranteed Asset Protection) Insurance
This insurance covers you if you write off your car. This usually covers the gap between what you get as a cover and the cost of repairs or providing a like for like replacement of the car. This insurance cover provides peace of mind if you have a complete write-off or unrecoverable. But if your car can be repaired within the motor insurance policy then you won’t need this insurance cover.
You have no choice but to spend your hard-earned cash insuring your mortgaged home or your car. Even so, that doesn’t mean signing on the dotted line of the first policy you are offered. It is a competitive market and there are deals to be had if you have the time and patience to shop around.
