You should make sure you insure your house especially if it is a high value property. Having your home insured offers you peace of mind in time of crisis. The majority of people are encouraged by banks to purchase insurance for their properties, but in your case, it is crucial to insure it from the moment you become its owner. If this is the first time you have had to do this, then you probably do not know what to ask the provider. You have to be sure that you ask the right questions, because in this way you will get the best policy for your high value property. The last thing you want to worry about is choosing an insurance that does not cover all your goods.
Check the list below:

Do you offer any discounts for high value home insurances?

Let’s face it, the cost of a high value property is higher than the one of a standard insurance, so you should check if there are agencies on the market that offer discounts for this type of policy.

Do I need to inform you if I want to have a major work done?

The majority of companies require the homeowners to inform them if they want to have major work done to the property i.e an extension. The main reason is that the amount of the cover will change when you do this, and they have to know in time to customise the policy according to your needs. In addition, any work you do to the property increases the risk of damage, and this means that your contents could also be moved from the house. In this case, the agency may not offer insurance for the items you move, because they can get damaged during the process. There are situations when you have to take out extra insurance during the process of rebuilding, and inform the insurance agency of the name of the builder you work with.

Does the insurance cover the damaged caused when items wear out?

You should know that the majority of insurance agencies do not cover the items that wear and tear. They cover only the damage caused by unexpected and sudden events, not for the damage caused by failing and breaking down, because you do not maintain your home properly. You have to look after your possessions and house and maintain them, because a high value home insurance is not a substitute for proper care.

Will the insurer use the builder you want?

The answer to this question may vary according to the agency you collaborate with. The majority of insurance providers are flexible when it comes to covering for the damage of the properties, and they allow people to use their own builders. However, you have to keep in mind that you are the one who would be responsible for the quality of the work, and if there are any issues with poor workmanship then you will be the one who will have to solve it with the builder. These are only some of the questions you should ask before signing a high value home insurance policy.

Richard McLeod
Director at McLeod Risk Services LLP
Richard McLeod LinkedIn profile

Top tip

Using an independent bespoke insurance broker such as McLeod Insurance, can reduce the cost of your policy, whilst also achieving the broadest cover in the market.

Direct policies are NOT necessarily the best value.