Tag Archives: home insurance

Understanding Cheap Home Contents Insurance

There are many factors that affect cheap home contents insurance. First of all it must be understood that if one starts to look for a cheap home contents insurance plan, then one must first get one’s facts straight about the reasons why an insurance plan for a house and its contents is high or low. Then one must also be able to and must look for the best deals in the market and compare them for differences once all the information has been collated. What one must look for are the nuances and the factors which can be taken into account to bargain on the premium amount and hence get the most economical plan.

First of all, it must be understood that a cheap home contents insurance plan totally depends on the distance of a property from the nearest fire station. This is an important factor to be considered because if the house catches fire, the further the fire station is, the later the help will arrive and hence the extent of the damage is higher due to the delay in the arrival if the fire truck. Of course it is not only in case of fire but also other natural events like flood and earthquakes. There is also a cover provided against theft and robbery, which brings us to the next factor that affects the home and contents insurance premium. The location of the house matters and when an insurance assessor visits the property to assess it for damage, he also assesses the crime rate in the area.

This information is sought by punching the post code in the database the home insurance companies have which gives them a bird’s eye view of the crime rate in the area and hence they can assess the risk of damage to property due to theft and robbery.

Common features seen when you compare Home Insurance

If you compare home insurance with any other insurance plans, you will find that there are some common factors that affect the premium rate. When it comes to any insurance plan, the basic factor that drives the plan and the insurance assessor to calculate a premium for the cover is the risk factor. The basic criteria for getting insurance is after the assessment of the prospective buyer to find out how likely is he to file for a claim. The higher the likelihood, the higher is the insurance premium amount.

Hence, if you compare home insurance plans from different companies, there will be a few common factors that you will see despite the differences in the premium amount quotations for the same insurance cover. All the insurance plans will take into account the location of the house and assess it for its complete value minus any adjacent flat grounds around it. Only the house is considered and many a times, the total value of the house includes the content inside the house. The home insurance companies negate the overall value and offer a large percentage of this value as the insurance cover. Where the location is concerned, an insurance assessor’s job is to see how much risk the house is at being where it is. He will assess how much time and efforts will it take to douse it in case the house catches fire. Hence the distance from a fire station and immediate crime levels in the vicinity matter considerably. Crime rate is considered to assess the susceptibility of the house to robbery and theft.

Lastly if you compare home insurance plans, you will also find that one of the factors that affect the insurance premium amount is the material that the house is made up of. If the material is flammable, then the insurance premium is high.