Is Buying Home Insurance Cover Compulsory?

While actual policies will vary, buildings insurance typically covers any damage done to your home as the result of theft or attempted theft, storms or flooding, subsidence, earthquakes, vandalism or riots, fires, moving objects like a car driving into your home, and leaking water or oil from a burst pipe or tank. If you currently have a mortgage, the lender will usually insist that you take out a buildings insurance policy, no matter if your home is an investment or your primary residence. However, in other cases, buildings insurance is not compulsory.

You can do your own research and typically find a much cheaper policy than one that you would receive from the lender. However, the lender will still want to check the cover to make sure that the policy is adequate enough to make the company feel better about providing you with a mortgage. They need to protect their own interest in your property, and will try to persuade you to purchase their version of home insurance instead. While the lender may charge you a “switching fee” to reimburse them for the time spent searching for a policy for you should you decide to go with another company, sometimes your new insurer is willing to pay this fee instead.

While buildings insurance may be compulsory if you have taken out a mortgage, contents insurance is not compulsory, although it is still highly recommended. Buildings insurance cover pays for the cost of rebuilding your home should it need shoring up or be burnt to the ground, and contents insurance is advisable because you may find that your antiques, valuables and other possessions are damaged or lost as the result of a disaster.

Although buildings insurance is not compulsory if you do not have a mortgage and contents insurance is not mandatory at all, it is still in your best interest to ensure that you are covered by these policies. Your home is likely to be one of your most prized possessions, something that you have worked hard to obtain. You simply cannot afford not to have the proper insurance cover. It can be a huge worry to think about the possible loss or damage to the premises as the result of a fire or storm, as well as the fact that you would possibly have to replace each one of your personal belongings inside the home.

Sometimes, people may think that a bad or unfortunate event will never happen to them. However, the reality of the situation is that each and every homeowner is at risk. In fact, one in every three people will experience a burglary at one point or another and with weather conditions uncertain, you should consider carrying the proper home insurance policy, regardless of whether it is compulsory or not. While you might not feel that it is necessary and it is simply a waste of your money, imagine how comforted you will feel if your home is destroyed. Your insurance policy will pay for the cost of repairs, rebuilding and possibly relocation until your home is finished. Home insurance cover, even if not mandatory, is absolutely worth the peace of mind.

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