Insurance is required to cover your items of value in the event of an incident. Its important for people living in council house to understand what type of insurance they need.
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.
Home contents Insurance is available in two options. ‘New for Old’ and ‘indemnity’ cover. The most comprehensive version is the new for old policy. The insurance company will payout for a claim to replace the items new value. For example, if a 15 year old carpet got ruined by a flood. A payout would be awarded to cover the replacement of new carpet of similar quality. Even though the original carpet was well worn and past its best.
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.
Buildings insurance covers the roof, walls and structure that makes up the house. Council or association accommodation will act in their own interest by providing buildings Insurance. In the event of an incident where part of the council houses structure becomes damaged. The landlord would make any repairs or replacements at no cost to the tenant. Be aware that if the occupant was deemed as negligible causing the damage. The council could pursue them for the costs of any repairs because their own insurance might not payout.
Housing associations and council house need not be concerned with buildings cover. If they want to insure their possessions then a new for old policy is probably the best option. It might be more expensive but you will then have a cover that is worth having that will enable you to buy decent replacements to cover your losses.
For more Council House information, then visit exuk.co.uk, a Uk Housing association swap website.
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