Home insurance

There are two main elements of a home insurance policy.  Buildings insurance covers damage to the structure of your home, along with its fixtures and fittings, while contents insurance protects you against damage or loss of the items that you would normally take with you if you moved.

People moving house often buy home insurance directly from mortgage providers, but this is not always the best option.  Research conducted for Privilege (by You Gov in October 2005) found that only half of those with home insurance shopped around for an alternative quote the last time they renewed their policy.  Sixty five per cent of those with ‘mortgage linked’ home insurance policies simply renewed with their mortgage provider because it felt like the most convenient option.

But shopping around for home insurance can have its rewards, both in cost savings and cover benefits.  Privilege, for example, offers home insurance customers access to a range of exclusive discounts with food, leisure and lifestyle brands.  Standard benefits for home insurance customers also include a 24-hour emergency hotline providing access to round-the-clock advice in the event of a domestic emergency.

It is always worth checking what your home insurance policy covers.  For example, ‘new for old’ home insurance cover replaces old items with new ones in the event of a home insurance claim.  Cover for rebuilding your home can also vary, and it is important to know the correct value (which is not the same as the market value of the property) when getting a home insurance quote.  Privilege provides rebuild cover of up to £1,000,000 as standard.

Of course, price is also important when choosing home insurance.  That’s why Privilege gives you 15 per cent off your first year’s home insurance premium, or 25 per cent if you already have a Privilege car insurance policy.  But choosing the cheapest home insurance quote could prove to be a false economy if it does not offer the cover you need.

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