The importance of financial advice when buying home insurance

When the time comes to buy home insurance – whether you’re a first-time buyer, moving house, remortgaging or up for renewal – it may seem like the easiest and quickest thing to do is head straight to Google and a comparison site.

Of course, it goes without saying that we all want to get the best price for our insurance, but we mustn’t overlook the quality and suitability of cover. If you choose a policy that isn’t suited to your needs, you leave yourself wide open to financial risk. The whole point of taking out home insurance in the first place is to protect you financially if something goes wrong, so it’s advisable not to cut corners.

Protect your most valuable asset.

Your home is likely your most valuable asset, and home insurance safeguards your property and everything in it from the unexpected. It’s natural to feel overwhelmed by the complex landscape of insurance policies, but that doesn’t mean arranging insurance can’t be straightforward.

However, you might think it's quick and easy to buy home insurance online, but there are many questions to answer, all packed with insurance jargon. Plus, there are hundreds of variations of home insurance out there, all with different ways to describe the features and benefits, exclusions, and optional extras. This is where seeking financial advice becomes invaluable when purchasing home insurance.

Cut through the noise.

Professional advisers have the knowledge and experience to help homeowners, landlords, and tenants carefully assess their individual needs. They can evaluate factors such as the value of the property, its contents, and any unique risks associated with its location to ensure that insurance policies are tailored to your specific needs rather than simply regurgitating an overwhelming list of policies that look similar but differ in the levels of cover they provide.

Answer important questions

Financial advisers can answer your questions to reduce the stress of finding the right insurance and simplify the process. They can explain how home insurance works, help you understand the intricacies of insurance policies, and explain the various types of cover available, such as buildings insurance, contents insurance, and additional options such as accidental damage, mortgage and income protection.

When buying insurance through an adviser, you can ensure you leave with an understanding of what you can claim for, as well as what home insurance doesn't usually cover, such as damage caused by general wear and tear and the cost of routine maintenance.

Experts can also help identify potential gaps in your insurance and uncover areas where additional protection may be necessary, such as if you have a particularly expensive item that may fall out of the policy’s sum insured. A sum insured is the maximum your insurer will pay out if you claim on your buildings and/or contents. Most policies will have a single-item limit, which is the most an insurer will pay for one item. If the value of an item such as art or jewellery exceeds this set value, then you need to register the item individually. Your adviser can help you check the policy details to ensure that your valuables don’t exceed the overall limit.

Build a long-term relationship.

Financial advisers can provide ongoing support throughout the lifetime of your insurance policy and beyond – from first-time buyers, to climbing the property ladder and remortgaging. You can get in contact as and when you need to review the policy and ensure it remains aligned with your evolving needs and circumstances. Additionally, financial advisers can offer guidance on navigating the claims process effectively in the event of a claim.

The value of professional financial advice when buying home insurance shouldn’t be underestimated. By putting your trust in an adviser, you can achieve peace of mind knowing that your most significant investment is adequately protected against potential risks.

Article last updated: 28/03/2024

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