If you have recently bought a new house then you are most likely breathing a deep sigh of satisfaction and relief at having achieved one of your most fundamental dreams.
When a person buys a new house, it is believed to be one of the most major milestones in his life simply because of the kind of investment that it entails.
However, after you have breathed that much deserved sigh of relief, you will soon start wondering about protecting your investment from the uncertainty of life or chance incidents.
A random accident can result in your investment going down the drain or requiring significantly more investment.
This is why people who have recently bought a new house are recommended to buy home insurance policies by their old and wise acquaintances.
If you have decided to pay heed to these genuine warnings from your well wishers then you are planning to purchase an appropriate home insurance policy.
In order to do this, you should know that there are primarily three types of home insurance policies i.
e.
buildings only policy, contents only policy and the buildings and contents only policy.
As you can probably surmise, the first policy just protects you from accidental damage to the structure, the second only focuses on accidental damage to the contents of the house and the third gives you coverage for both under one policy.
All three of these types of policies have their own pros and cons and your choice of the three would depend entirely on your specific requirements and needs.
The limitation of the first two policies is that they only focus on protecting half of the house while their benefit is that they are cheaper than the last.
The last variant, on the other hand, is a very comprehensive insurance product that protects you from financial ramifications of any kind of accidental damage to your house.
However, this comprehensive coverage also means that these types of policies would cost more than the first two varieties.
Once you have decided which variant suits you the most, your next choice would determine the source from which you purchase your policy.
This question also has three answers including a local agent, a generic search online and comparison websites.
Buying from the local agent is a conventional method which means that it has the old flaws related to it.
These flaws are simply that the purchase process will be stretched out and extremely tedious for you.
Furthermore, there is the danger of a conflict of interest hampering your purchase because every agent would not really think of your benefits and some might try to line their pockets at your cost.
The other two methods, however, are by far the better ones mainly because they not only save you time and effort but also give you unrestricted control over your purchase.
Ideally you should opt for building and contents insurance policies because you can easily reduce their cost by not including features that you do not need.
You can do this because most building and contents insurance policies contain optional features that you can choose to include or exclude.