Understanding General Insurance

At Source Insurance, we love to provide people with resources to expand their knowledge. Whether you’re a broker or customer, we want you to understand insurance as much as possible to ensure the so you can dot all the ‘I’s and cross all the ‘T’s without feeling like you’ve missed something. The importance of an accurate quote to suit your needs cannot be understated enough! Ultimately, the more you know what general insurance is and how it works, the easier the process will be.

Finding your perfect home insurance policy is much simpler once you understand all the factors involved with general insurance. However, we realise that not everyone will have full knowledge of home insurance and how the process works. Because of this, we have constructed a guide to understanding general insurance for you to utilise.

What is General Insurance?

In Layman’s terms, general insurance is classed as any type of insurance that doesn’t fall under the category of life protection. This means anything from your car insurance to home and pet protection is identified as general insurance. So, if you ever hear your broker referring to your policy as general insurance, this is why. It simply means that it’s an insurance policy outside of life protection.

What Exactly is Home Insurance?

Home insurance is a type of insurance that protects homeowners from losing money in the event of damage or loss to their homes or belongings. It’s also commonly known as buildings and contents insurance. Home insurance does exactly what it says on the tin, shielding your assets to protect you financially if you need to make a claim.

This protection will also protect the building from risks such as flooding, structural damage, and other factors. To view different types of threats and other key terms, take a look at our jargon buster here.

What is a Claim and How Do I Make One?

A home insurance claim is when you ask your insurance company to help you cover the cost of any damage or loss to your home or belongings covered by your insurance policy. For example, if your home is damaged by fire or flood, you can claim with your insurer to help pay for the repairs or replacement of any damaged or lost items.

Of course, this is all providing that your policy covers all these areas. For more on this topic, read our blog on personalising an insurance quote to fit your needs.

To make a claim, you need to contact your insurance company and provide them with the details of the damages or loss of possessions. The more detail you can provide, the better. You will also need to include the date and type of incident that has occurred. 

Once your claim is approved, the insurer will provide you with financial support or directly cover the cost of the repairs/replacement of damaged and lost items. However, it’s essential to check your policy for any limitations and exclusions from your policy to ensure that everything is covered.

How Does the Home Insurance Process Work?

If you’ve never purchased home insurance before, then you may not know all the ins and outs. Home insurance works exactly like phone or car insurance, which you’re likely to have experienced throughout your life.

You start by finding the best policy that suits your needs, covering the items in your home you wish to safeguard. Once you’ve selected your chosen insurance policy, you’ll usually have the option to pay the insurer monthly or in one annual fee. The annual fee is typically cheaper because you pay in one large chunk. 

This is called an insurance premium, and the price depends on various factors. This can include the value of your property, the level of coverage you have chosen, and any additional cover that you may need to include.

Your contract will then be valid for a year, with your insurance company covering your home and contents in case a claim needs to be made. However, it’s essential to ensure that your insurance policy covers all necessary bases because your insurer may refuse to pay out in the event of a claim that isn’t in your contract.

Overall, insurance helps you protect your financial future by providing a safety net if something unexpected happens. Companies such as Source will connect you with your broker and insurer to ensure you have the perfect policy to fit your needs. Want to discover more? Take a look at our website today to find out what we do.