With storm warnings and storm damage on the rise, it’s prudent to know what insurance policies are needed to avoid dipping into your savings. Depleting your savings could interfere with your savings goals and reduce your financial resilience. Here’s why both types of coverage are worth purchasing or reviewing, especially during these times.
Many things can go wrong during a storm. Your home could be flooded, or falling debris like large branches could damage your roof or other structures on your property. Home insurance covers the cost of repairing this damage, which means you don’t have to touch your emergency savings.
There are three types of home insurance policies:
- Buildings insurance covers the physical structure of your structure.
- Contents insurance covers property and fixtures inside your home.
- Buildings and contents insurance combines the above policies.
Your choice between these types of coverage may depend on cost, but it’s wise to read the terms to avoid paying for something you may not really need.
If you do not yet have home insurance, the first thing to do is to find out about the risks that threaten your home. Your property could be located in a flood zone, for example. If so, it is best to choose a policy that covers flood damage.
The Motley Fool has compiled a list of the best UK insurance comparison websites to help you save time and money. Use them to find home insurance providers and compare their offers to find the most suitable and affordable policy for you.
If you already have home insurance, it may be worth reviewing it every year and comparing it with what other providers offer. There could be a cheaper or better deal, which means an opportunity to cut your expenses, especially now that the cost of living is rising.
It goes without saying that comprehensive insurance is preferable to liability insurance. But does it cover storm damage? Fortunately, all-risk insurance covers damage from falling objects and flooding, characteristic of storms, but not third-party coverage.
If you have third-party auto insurance, it may be best to upgrade to full coverage. You don’t want to be hit with high auto repair costs amid rising inflation. We have a list of top picks for car insurance comparison sites to help you compare different providers.
It’s also good practice to protect your vehicle from damage, even if it’s insured. For example, being aware of where you park it when stormy weather is forecast is important. Additionally, it might be helpful to consider the top tips for driving safely through water, especially the do’s and don’ts.
As with home insurance, if you already have comprehensive coverage, it makes sense to review it every year and compare it with what’s available from other providers. Chances are there is cheaper or better coverage available elsewhere. That said, it’s always best to speak to your current provider and let them know you’re considering a move. They may be able to match the cheapest deal you’ve found, saving you time and effort.
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