Insurance

House Insurance
Car Insurance
Travel Insurance

Insurance plays a vital role in the economy. It allows individuals and businesses a degree of protection from the impact of unexpected and damaging future events. You can insure against all sorts of risks, there is almost no limit. Under general insurance we have focused on three main types, household insurance, motor insurance, and travel insurance.

House Insurance

House Insurance comes in two types. Buildings insurance and house contents insurance. Buildings insurance covers the structure of the home and pays the cost of any repairs or rebuilding that is carried out as a result of your home being damaged by any unforeseen events, as detailed in your insurance policy. The sum insured under the policy must be for the full cost of rebuilding your home. It is your responsibility to ensure that the sum insured is correct. If your house is significantly underinsured your costs may not be covered or the claim could even be rejected.

House contents insurance covers the cost of replacing your possessions. Anything that you would take with you, were you to move house, is covered against loss or damage caused by the list of risks detailed in your policy. There is a wide range of cover available, ranging from 'indemnity policies' to 'new for old' policies. Some insurers will now base the policy on the number of bedrooms that you have, removing the need to value your possessions.

Premiums can be affected by your postcode. Your postcode can be used to gauge the area where you live, to see if it is a high crime risk area, or if it is a part of the country that is susceptible to flooding, for example. There is little you can do about this, but if you reside in a high crime area additional security measures can sometimes reduce the premium.

The risks for which you are covered are listed in your policy. It may be desirable to widen your cover. This can be done by insuring against accidental damage in the home: Extended accidental damage covers any accidental damage to the property like falling through the attic roof, breaking a table or paint spillage. As it is more comprehensive an extra premium will be payable.

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Car Insurance

Car Insurance - You are required by law under the Road Traffic Act to be insured against liability in the event of injury to other people or for damage to someone else's property as a result of you using a car or vehicle on the highway. There are three main categories you can choose from - 'comprehensive', 'third party, fire and theft', and 'third party only'. How you choose to insure your car depends on the level of risk you are prepared to take and how much risk you want the insurer to take for you. Premiums vary according to whom will drive the car, its type, where it is to be kept and what the car is to be used for. The type of cover will also affect the premium, comprehensive being the most expensive.

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Travel Insurance

Travel Insurance - A typical travel insurance policy provides five main areas of cover:

Medical Cover is perhaps the most important part of any travel insurance policy. If you are taken ill whilst abroad it can soon become a very expensive situation. Medical cover will meet the costs of such things as emergency medical treatment, and the expenses that arise from returning home early due to illness, or even death. This usually forms part of all travel insurance but it is wise to ensure that you have the level of cover your require.
Personal Liability covers the cost of any claims that are filed against you for injury or damage to others and their property. As with medical cover, personal liability forms a part of most travel insurance, and can extend to £2 million, even on cheap policies.
Legal Expense - covers legal expenses that result in an attempt to claim compensation or damages following an injury to yourself or death. You cannot usually claim against the tour operator, travel agent or carrier.
Cancellation or Curtailment - you may claim your expenses back if you have to cancel your holiday due to an unforeseen circumstance such as an illness or accident. You can often opt out of this part of the policy.
Personal Belongings - insures your belongings whilst you are on your travels. Protect yourself from theft or loss of money, passport, and other such valuables, or damage to any personal belongings such as bags, clothing and cameras.

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