With the cost of living continually rising and tight finances being pulled in ever more directions it is easy to see why so many Brits are constantly looking for ways to cut down their monthly bills. One option that some people may consider is cancelling their buildings insurance – it seems like an unnecessary expense and what are the chances of something happening to your home anyway right?
Buildings insurance becomes more important than ever when finances are tight, for a number of reasons that we’re going to look at below.
It is probably a condition of your mortgage
First things first, if you own your property with the help of a mortgage then in all likelihood you are legally bound to have an insurance policy in place. Mortgage lenders tend to stipulate this to protect their financial interest in the property – if something were to happen to it and you couldn’t afford the repairs then they need to know that they will be able to recoup the capital that they have lent you. So cancelling your policy could land you in hot water with your mortgage lender – a position that you certainly don’t want to end up in, with your whole home at stake.
It will protect you against total losses
If someone experienced a minor leak at their house that damaged their flooring, or their window was smashed, they may well have enough money in the bank to repair this themselves. But if a devastating fire were to rip through the property then it is very unlikely that the average person would be able to find the cash to repair the damage. This is why buildings insurance is vital. Although it is useful for small claims that would make finances a bit tight, it becomes invaluable when you consider the risk of something very serious happening to your property and potentially being left homeless.
If you make a claim, the insurance more than pays for itself
If you are ever unfortunate enough to need to make an expensive claim on your buildings insurance policy then you will almost certainly claim back more than your annual premium has cost you. Buildings insurance can be obtained for as little as £11 a month, with claim values potentially reaching 6 figures. For the cover provided it is therefore relatively inexpensive, making the selection of suitable cover a relative no brainer.
It will protect you against liability claims
Although it protects the bricks and mortar of your home, a buildings insurance policy can also protect you in other useful ways. Many policies will include some aspects of public liability insurance, which can provide invaluable protection in the event of you being sued. This could include scenarios such as somebody injuring themselves while on your property or some part of your home falling and injuring somebody as they pass by. This cover will be provided at different levels depending on which building insurance policy you choose but is certainly a benefit well worth having.
It is therefore clear that buildings insurance is a vital expense for a wide variety of reasons and certainly not one that you should consider scrimping on. In the event of a disaster at your home, it is vital that you have a suitable policy in place to help you pick up the pieces.