HOME INSURANCE FOR THE SELF EMPLOYED
 Protect against the unknownÂ
HOME INSURANCE FOR THE SELF EMPLOYED
Protect against the unknown
What is Home Insurance?
Home insurance is a type of insurance that financially protects your property against damage and loss. If, for example, your property was damaged due to a burst pipe, then, instead of footing the bill yourself, it would be paid by your home insurance provider. However, there are many variables when it comes to home insurance, which is best to be thought of as an umbrella term that covers all things property protection.
Different Types of Home Insurance
For example, there’s not just one type of home insurance. There are three main types: contents insurance, building insurance, and combined contents and building insurance. Contents insurance covers the items that are in your home. In the case of a burglary, it would be your contents insurance that covered the cost of replacing the items. Building insurance covers the house itself. If there’s an incident that leaves your home needing to be repaired, it’ll be this policy that covers the cost. The combined policy is, as suggested, a mixture of the two.
What Isn’t Covered?
It’s important to note that not everything that happens to your home will be covered by your insurance. To begin with, it’s important that you fully understand what is and is not included before taking out a policy; insurance can vary greatly in what protections it affords the policyholder. As a general rule, home insurance will not cover things like general wear and tear. Any damage that results from an act of war will also not be covered. When it comes to your contents policy, it’s important to note that standard policies will only cover items up to a certain amount. If you’ve got an expensive family heirloom, it may be best to take out an item-specific policy.
Other Home Insurance Factors
We live in an age when more people than ever before are working from home. Not all activity that takes place at a house will be covered by general home insurance, however, and home insurance for self-employed workers may be necessary. To know either way, a person who sets up an office in their spare room will need to check with their provider that their insurance also covers business related activity on their premises. If it doesn’t, then they’ll need to buy business insurance to be protected against damage to their business equipment, personal injury when they have business visitors, and so on.
What Affects the Cost of Home Insurance?
As with most insurance policies, there are plenty of different factors that influence the cost and premiums of a home insurance policy. Unlike other policies, however, not all of them are under the applicant’s control. The other properties and businesses that surround the home, for instance, play a role, as does the weather — a place that receives more severe weather will likely attract higher prices than a place that has mild weather, for example. Other things like the materials that the home is built with and previous claims are also factored in.
Active Mortgage advise on Home Insurance for the Self Employed and would love to chat to you about your needs. Please do give us a call on 01245 850 165 to speak to one of our advisers or contact us here and we will be in touch.
These articles are for information only and no advice should be conferred from the content within. Please seek independent financial advice prior to taking any action.