General Insurance refers to cover for motor, health, travel, home, marine and commercial activities. Boon Brokers are shortly launching a General Insurance portal directly through our website. On this portal, you will be able to select and arrange any general insurance product of interest, from a choice of many insurers, within 5 minutes. If you would prefer to speak to one of our advisers to discuss a general insurance product of interest, they would be happy to assist – simply call: 01508 483 983.
For the purpose of this article, we will discuss home insurance. This is because buildings insurance is a mandatory condition of all mortgage offers. Therefore, as our primary business is arranging mortgages, most of our clients require home insurance.
Buildings & Contents Insurance
The two types of general insurance are buildings and contents.
1) Buildings Insurance
Buildings insurance ensures that the fixtures of your property are insured against damage from the following:
- Vehicle collisions
- Falling trees
- Freezing/Bursting of Plumbing
Following any of these damages, a buildings insurance policy will provide financial cover for the cost of repair or reinstatement.
Property Fixtures include the following:
- Kitchen Fixtures
Other fixtures, not mentioned above, may also be covered. Our advisers often use the following analogy to explain what is covered by buildings insurance: “Imagine removing the roof from your property, tipping it upside down and then shaking it. Anything that falls out would not be covered by buildings insurance”.
2) Contents Insurance
Whereas, contents insurance covers the cost of replacing your possessions that are stolen, destroyed or damaged. These items are known as fittings.
Fittings include, but are not limited to, the following:
- Clothes and Jewellery
- Electrical Items: Consoles, Laptops and Televisions
- Furniture: Chairs, Sofas, Beds, Wardrobes and Dining Tables
- Entertainment: DVDs, CDs, Toys and Video Games
- Soft Furnishings: Curtains, Bedding and Cushions
- Antiques and Ornaments
Home insurance premiums have three significant determinants:
- Construction of Property
- Location of Property
- Reinstatement / Repair Costs
Construction of Property:
There are many different types of property construction. Examples include: Brick & Tile, Thatched, Timber-Framed and Concrete. The only construction type that all lenders are unanimously accepting of is brick & tile. This is because the risk of damage from the elements listed above is minimal. Whereas, for example, thatched houses are notoriously risky for providers to insure due to their high risk of damage from fire or lightning. Due to the greater risk involved, expect higher monthly premiums for properties that are not of brick and tile construction.
Location of Property:
If a property is in an area that increases its chance of damage, increased risk will be reflected in higher monthly premiums. For example, expect higher monthly premiums in areas of high flood or vandalism risk.
Reinstatement / Repair Costs:
The underlying factor that determines monthly premiums is the sum to be insured. For more expensive fixtures and fittings, expect a positive correlation in monthly premiums.
For further information on general insurance, please click the ‘Contact Us’ button and submit an insurance enquiry form. Our advisers would be happy to discuss your requirements in depth.