Information On Council House Insurance

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.

The main two types of home insurance are building and contents cover.

Content insurance is required to cover contents inside a house. This is to cover moveable items such as your appliances, electrical goods, carpets, furniture and any valuables. In the event of damage or loss, possessions they will be covered under the contents insurance. The insurance company will then payout a figure to cover your loss if you have a policy.

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.

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.

For a typical council tenant our advice would be to treat the property as they would their own house. Get “new for old” contents cover and they will then have piece of mind that in the event of an accident or incident. Items will then always be covered properly by a sound insurance policy.

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