Property Insurance

If disaster strikes and your property is burnt down or heavily flooded, then you will need a property insurance policy to avoid the financial hardship that can be associated with these events.

Property insurance protects your buildings and/or contents against physical damage to, or loss of, your property.

Should your property suffer from a fire or a severe flood and you did not have adequate property insurance, you could face financial ruin. Even if you are insured, you must ensure the sum insured is adequate. For instance, if you are 30% underinsured, you will find any claim is reduced by 30%.

What does it cover?

Insurance policies vary in the cover that they offer. However, there are basic elements to most policies:

• Damage by fire
• Escape of water
• Flood (unless specifically excluded on the policy schedule)
• Earthquake
• Lighting
• Subsidence
• Theft
• Accidental damage is usually restricted to glass and sanitary fittings

Full accidental damage is usually an option, as is garden buildings and furniture.

The aforementioned events that can lead to a claim are known as the ‘insured perils’. If the peril is not mentioned in the policy document, then it is generally not covered. If you are unsure, always check and DO NOT wait until a claim occurs to find out that you are not covered.

Generally, people mean the buildings, fixtures and fittings when they refer to property insurance. The contents of your property and personal possessions would be insured under a contents policy.

A note for landlords or semi-commercial property: If the property is let, you will need a landlord insurance policy. If commercial landlords property. If the buildings are commercial and owner-occupied, then you will need a commercial building or commercial combined policy.