Subscribe Feed (RSS)Arranging home insurance can become complicated if living in a council house or housing association property. The area of difficulty is often what is and isn’t covered by the landlords own insurance policy.
Home insurance is split into two main types: Contents insurance and building insurance.
Generally moveable items in your home need to be covered by home contents insurance. This might included your electrical items such as computers and hifi. Other items like your soft furnishings, carpets and home appliances would also be covered.
The two varieties of home contents insurance are ‘Indemnity’ and ‘new for old’ cover. The cheapest contents insurance is Indemnity cover. In the event of a claim this type of insurance will calculate the value of the items in their current state. The insurance company will take age and condition of the items into account before they payout.
The most expensive home contents insurance is the new for old type. If you claim successfully under this contents insurance the payout will be enough to buy brand new replacements. This will likely be a considerably bigger payout that the indemnity cover. It will enable you to go out and buy brand new replacements to cover your loss.
Home contents only covers possessions inside of your house. To cover the house structure building Insurance is needed. A council house tenant will not need to be involved in this. The council or housing association will arrange buildings insurance. If an incident occurred resulting in damage to the fabric of a house the council would make any repairs via their own insurance. Exceptions might occur if the damage was caused by negligence from the tenants actions. The landlord may seek to get compensation from the tenant to cover repairs if proof of negligence existed.
In conclusion it’s safe to say that a council tenant only needs to be concerned with home contents insurance. Our advice would be to buy ‘new for old’ cover to be certain of a worthwhile claim if the worst happens.
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