new home insurance

Building or buying a new home definitely has its advantages: they can be more energy-efficient than older homes, and it's likely that they'll be cheaper to maintain. But what are the implications for your home insurance?

While the house construction is underway it will be covered by your building contractor's site insurance but once the build is complete you need to get building and contents insurance in place before you move in.

Home owners are under different constraints to tenants, as the building insurance and contents insurance is their responsibility.

Put simply, buildings insurance covers the structure of your home, along with its permanent fittings and fixtures, like the kitchen and toilets. Lots of these policies will also include cover for out buildings: sheds garages and greenhouses, for instance. You are also likely to be insured for accidental damages to things like cables, underground pipes and the glass in your windows and doors. Most mortgage lenders make getting buildings insurance compulsory on your behalf.

It's important that you check any policy you are thinking of buying carefully to see what it covers.

Buildings insurance typically covers damage caused by flood, fire or subsidence, theft, storms or malicious damage. If you're living in an area which is prone to extreme weather conditions, it's advisable to get extra cover in the event of the worst happening.

Contents insurance covers the belongings in your home. Before you take a policy out, you'll need to calculate how much it would cost to replace your belongings. It's good to do this on a room-by-room basis, making it easier to keep track of losses and simplify the process of making a claim, should you need to make one.

It might be a time-consuming process, but insurance companies would only pay out up to the sum insured so underestimating the value of your belongings could leave you out of pocket.

How do I keep the cost of insurance down?
To get the best deals for home insurance, it pays to shop around for your quotes using a comparison website. These make it really easy to see what's on offer from lots of companies so you can get a good deal.

There are also a number of ways which you can keep the cost of insuring your home down.

You could try the following:

Increase your security: Most insurance companies will offer discounts for approved locks on external doors and the use of key operated locks on windows. If you have a burglar alarm then this can also reduce your premiums, providing it is professionally installed and maintained annually.

Join a Neighbourhood Watch Scheme: If you live in an area that is covered by one, then you may qualify for a discount on your home insurance.

Prevent house fires: Get at least one smoke alarm fitted per floor. Most insurers ask if you're a smoker and will take this into account. Don't be tempted to lie and keep your premiums down, as it may invalidate a future claim!

Increase your voluntary excess: The higher voluntary excess you specify, the lower the premium should be. However, don't set it at a level you can't afford!

Buy buildings and contents insurance together: Many insurers offer a discount if you buy your buildings and contents insurance together, some may give contents insurance for free if you take out a buildings policy.

Buy your home insurance online: When insurance companies sell policies online they have lower overheads and this is usually reflected by lower premiums.

Take what you need: The more options you add to your policy, the more expensive it will be. Before you buy, check what cover is included as standard and what cover will attract an additional premium. To lower your premium, remove any additional cover options that you don't need but will have to pay for.