Home Insurance

Home insurance can often feel like a big expense for nothing. The money has to be paid each month or year, to pay for the house being rebuilt if it was destroyed and possibly also for the contents as well.

If you have a mortgage then the mortgage company will insist that you pay insurance for them, for example –  Halifax buildings insurance, in case of it being damaged or destroyed so that their investment is protected. If you do not have a mortgage then it is up to you if you have insurance.

It is a big amount of money to pay out and it can be tempting to risk it and not have any insurance. However, it is worth thinking about the possible consequences. Even if you put aside and saved the money that you would have paid out in insurance over the years, it would be very difficult to find the money to replace a destroyed house.

The contents are similar. Unless you are renting a furnished home or do not have many possessions it would be very expensive to replace everything. Imagine everything you have, electronic items, clothes, pictures, furniture, books, dvds, cutlery and crockery. There is so much more than this and it will all have to be replaced and all in one go. That is a huge expense.

It can be a calculated risk, if you decide that you do not have enough valuable stuff and do not want to insure it. Also if you have unvalued unique items such as antiques or paintings, then it may not be worth insuring them. You will never be able to replace them if they get destroyed and so the insurance is pretty pointless.

So always think hard about taking out insurance. It is not just a case of whether you can afford it but rather whether you can afford not to have it.