Insurance: Basic Concepts

The key way to get the best deal for any type of insurance is to shop around as much as possible to ensure that you have investigated a large number of options. As well as the overall cost of insurance, you should consider the type of insurance policy and any hidden costs.

For example, you usually expect home contents insurance to cover posessions within your home, such as furniture, clothing and electrical equipment. You will usually be protected against a variety of risks ("fire and theft" being the most frequently mentioned). However, it's worth asking questions and checking the small print: does the policy protect against flooding or accidental damage, for instance?

Some policies allow you to take out additional cover that may allow you to protect your belongings outside the home. It is, however, worth remembering that policies may specify that you should pay an excess on some types of claim. An excess means that you will have to pay for some part of the claim yourself.

If you are short on time or don't feel like doing the investigating yourself, you can get an insurance broker to assist. You should be able to find independent brokers advertising in your local Yellow Pages, or on the internet.