Taking out insurance is the best way to protect your family financially against things going wrong. Here's our advice for parents on essential insurance policies for the family: online and offline.

Essential Insurance

Most policies work in the same way – you insure yourself against a particular event or circumstance by paying a regular premium (usually monthly), the level of which will depend on your level of risk. In most cases there will also be a specified excess, i.e. the amount you will need to pay before your insurance kicks in.

These days it is possible to insure yourself against pretty much any conceivable eventuality so it can be hard to pick and choose the right policies for you. To get you started, here are the facts about essential insurance for family life.

Home insurance

There are two kinds of home insurance available, building insurance which covers the house itself, and contents insurance which covers your belongings.

Building insurance

• Usually required by your mortgage lender

• Covers damage to your property e.g. from fire or flood

• Often includes damage to fixtures and fittings, and external buildings such as sheds and garages, but doesn’t cover your belongings

• You may have difficulty finding an insurer if you are at particular risk (e.g. if you live on a flood plain

Contents insurance

• Covers loss or damage to your belongings e.g. from theft or fire

• Some policies offer the cash value of the item at the time it was lost or damaged, but a “New for Old” policy gives you enough money to buy the equivalent item new

• Do a systematic survey of your stuff to work out how much it’s worth so that you can get the right level of cover – supplementary insurance may be needed for valuable items

For in-depth, understandable information on home and buildings insurance, see Insurancewide, the experts on UK insurance comparisons. And to see how you could start paying only £2.50 per month for full home insurance, click here!

Car Insurance

Motor insurance is a legal requirement for all motorists in the UK.

• Third party insurance is the minimum legal requirement and will cover damage to a third party or their car in the event of an accident

• Third party fire and theft will also cover your own car if it is burnt or stolen

• Comprehensive motor insurance will cover the above as well as damage to yourself or your car in the event of an accident

• Breakdown insurance or roadside recovery insurance may also be a good idea

• Take advantage of your “No Claims Discount” if you haven’t claimed on your insurance

More information and speedy comparisons on your car insurance are available from Insurancewide.

Travel insurance

Cover is available for various eventualities including the following

• Medical insurance for any treatment needed abroad and/or for emergency transportation back to the UK

• Cover for lost or stolen baggage and belongings

• Trip delay or cancellation insurance

• Risky activities such as skiing may require extra insurance, so check with your provider

See our articles on Choosing Travel Insurance and how to get Travel Insurance from Just £2.50!

Pet insurance

The family pet can run up costly medical bills or even legal expenses so getting an insurance policy may be worth your while.

• Life-long insurance will pay for specific conditions throughout the life of the pet

• Whereas time-limited insurance will only pay out for 12 months of treatment per condition

• Extras may be available such payment of kennel or cattery fees and you can even insure yourself against your pet causing a car accident or other accidental damage

• Routine treatment and visits to the vet are not usually covered

Further information

Further information and guidance on life insurance and family insurance, as well as quick and comprehensive quotes, can be obtained here.

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Advice For Parents: Essential Family Insurance