Home insurance is one of the hidden costs that should be taken into consideration when planning a home move. You need to ensure that your house and its contents are adequately protected in order to have the peace of mind to settle into your new home.
When buying a house there are many hidden costs that can quickly mount up; for example, you need to remember to include legal fees, valuation fees, mortgage fees, estate agents fees and stamp duty in your budget.
These costs can come as a bit of a shock when you’re already making a huge financial commitment. There are, however, ways to minimise or avoid some of these moving costs completely.
Some mortgage providers will, for instance, offer to cover some of these expenses if you choose to take out one of their products; in these cases it is a good idea to use a comparison website to see how competitive the product actually is. It’s important to be sure before selecting a mortgage that it isn’t actually going to be a false economy.
First time buyers can avoid paying stamp duty completely if they choose a house that is below the £250,000 threshold. Previous homeowners have to pay stamp duty of one per cent on homes between £125,000 and £250,000.
There are some costs involved in home moving, though, which simply cannot be avoided and home insurance is one of them. When you purchase your own home it will be a condition of any mortgage that you put in place insurance on your new home.
Those who have previously rented property where the landlord took care of the buildings insurance may find that this additional cost comes as an unwelcome surprise.
Adequate buildings insurance is essential to protect your investment, and that of the mortgage company, in the event of a disaster. Fire and flood are just two ways in which your property can be damaged or even completely destroyed.
The good news is that buildings insurance is normally affordable, and many buildings insurance companies will allow payment in instalments throughout the year.
It also pays to shop around for cover, as policies and quotes can vary greatly. Good comparison sites can be found online which will enable you to find the best deal.
When comparing home insurance quotes, one thing to look out for is that the quotes are offering cover that is ‘like for like’. There’s little point in comparing two policies that offer completely different levels of cover.
It is also important to remember that the cheapest deal may not be the best deal for your circumstances. You should always read through policy details carefully to ensure that you are purchasing the cover that you need.
As well as buildings insurance you also need to consider purchasing contents insurance. Contents insurance is important for both home buyers and home renters as it protects the property that is inside your home.
With good quality contents cover you can insure everything from the contents of your wardrobe to whatever’s inside your jewellery box.
No one wants to imagine the worst happening, but should you be affected by fire or theft, you’ll want the peace of mind of having contents insurance in place.
As with buildings insurance, contents insurance policies can vary; for example, some may cover water damage and some may not.
You will also have the option to add accidental damage cover to your policy, which can prove to be worthwhile in many cases.
The important thing to remember with regards to both buildings and contents insurance is to make sure that any policy you take out provides the cover that you require. After that the top tip is to shop around to get the best value for money on this unavoidable moving expense.