A Brief Guide to Non-Standard Home Insurance Policies

Having your home fully insured is absolutely essential, and if you have a mortgage on the property, it will undoubtedly be required. While a standard insurance policy with relatively low premiums should provide adequate coverage for most people, there are others who have to take out a special policy due to increased risks or various other complications. Many buildings require a non-standard home insurance policy, but in some cases it might not be particularly obvious that your home stands out from the rest. Sometimes, you will need extra coverage which inevitably comes with higher premiums. For example, if you live in an area where there is a relatively high risk of flooding or subsidence, you might not be able to simply get a standard policy. However, there are a whole range of possible reasons why standard coverage might not be suitable for your property. The following takes a look at non-standard policies and the various things which constitute a non-standard risk property.

Increased Environmental Risks

If your property has a history of flooding, there have been any previous signs of subsidence or there are any other specific environmental issues governing its safety, you will likely need to opt for a non-standard policy. If your home is in an area where there is an increased risk of flooding, then your insurance premiums can skyrocket. Since the major floods which hit various parts of the UK in 2009, insurance companies have increased their premiums enormously in the areas where there is a higher risk. If you are not sure whether your home lies in a high-risk area or not, you should seek advice from the Environmental Agency at environment-agency.gov.uk.

Another major factor to consider is subsidence. Subsidence refers to moving earth beneath the foundations of a home. Unsurprisingly, this can cause major damage, and if there is a history of this in a particular area or with a specific property, the insurance policies available for it will reflect this. Other related environmental issues such as coastal erosion or landslides will also have an effect on your insurance policies.

Home Businesses

If you run a business from your home, you will not be able to take out a standard insurance policy, since this will not cover you for any business-related features as well. This rule also applies to farms. For farms and other businesses, even if you live on site, you will need to take out a suitable insurance policy. If you simply work from home, then a standard policy should be fine provided that other important requirements are met.

Legal Troubles

If you or anyone else living in the home have had a criminal conviction in the past, then you won't usually be able to get covered by a standard policy. Likewise, if you or any other residents have been declared bankrupt, your insurance premiums will also be effective

Unoccupied or Rented Properties

Unsurprisingly, a property which is left unoccupied for an extended period of time poses a higher risk. A standard home insurance policy should cover you if you are away for no longer than thirty days at a time. If, however, you spend a lot of time abroad, you only use the building as your second home or you rent it out on occasion, you will need to alert your insurance company. If you don't, then you may find that you are not covered in the event of a disaster. Home insurance policies vary considerably with regards to occupancy, so you will want to look over the terms of any contract carefully.

Listed Buildings and Specific Building Materials

For any listed building, a standard policy is unsuitable. Listed buildings are protected to a degree from modification, and thus require a specific type of policy. For example, a listed building with a thatch roof requires a non-standard home insurance policy which specifically covers the thatch roof. Due to the fact that the building is listed (and thatch roofs are also at an increased risk of fire or storm damage), you will never be able to use materials of other types if the roof needs replacing. Wooden houses are also at an increased risk.