Financial Wellbeing
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Home Insurance
There are two main types of home insurance you can take out:
- Buildings insurance – covers the structure of your home and what it would cost to replace any structural damage (e.g. doors, windows etc).
- Contents insurance – covers your belongings within the home (your laptop, TV, mobile phone).
Buildings insurance
Buildings insurance is a policy you would take out to protect yourself and cover the cost of repairing damage or rebuilding your home, both inside and outside, from unforeseen events like fire, floods and water leaks. You would usually get building insurance if you’re:
- a homeowner with a mortgage – In order to take out a mortgage, your lender may insist that you take out buildings insurance throughout the duration of the mortgage.
- a homeowner without a mortgage – As the cost of repairs is your responsibility
Depending on the insurer, these structures and fittings are commonly covered:
- Walls
- Windows
- Doors
- Roofs
- Ceilings
- Kitchen
- Bathroom
- Built-in furniture (wardrobe etc)
Your buildings insurance won’t usually cover the following:
- general wear and tear
- damages caused by pest infestations
- damages caused by contractors
- damages caused by cold weather and frost
Find out more about buildings insurance here
Household contents insurance
This can be used by homeowners or renters. You should consider taking out household contents insurance to cover your possessions against fire, theft and other risks, such as accidental damage. If something happens that destroys or damages your possessions, it can cost a lot of money to replace the items. Contents insurance can also cover items when they are away from the property including bicycles, phones and laptops, but you may have to pay more for this.
Some policies offer new for old cover. This means you get the replacement cost of a new item for the lost, stolen or damaged item regardless of its age. Make sure you know which cover your policy offers before you take it out.
Taking out a household contents policy
Before you take out a policy you need to work out how much cover you need, based on the cost of replacing all your possessions. Many people under-insure themselves, so make sure you include everything, including carpets or flooring and the contents of your garage or shed. You may want to get several quotes before choosing a policy.
Find out more about household contents insurance here
Making an insurance claim and excess
It’s worthwhile knowing what your excess is when you take out your policy.
Most insurance policies include an excess which is a charge for making a claim, usually deducted from the money you’ll receive. It might not be worth making a claim if the amount you’re claiming is less than the excess. Remember, you don’t have to make a claim even if you’re entitled to do so, but you must tell your insurer about an event.
If you need to claim make sure you contact your insurer as soon as possible as there may be time limits for making a claim. You’ll usually be sent a claim form, although some insurers will take the information over the phone.
Council Tax & Discount Reductions
Council tax is an annual fee your local council charges each residential property (every home) for local services, including:
- Police and fire services
- Leisure and recreation projects like sports centres and parks
- Libraries and education services
- Rubbish and recycling collection
- Transport and highway services
- Environmental health and trading standards
- administration and record-keeping, including marriages, deaths and local elections.
You have the option of paying all of your council tax in one go, or you can split up the bill and pay in monthly instalments to make it easier for you. In some circumstances, you may be able to get a Council tax discount or Council Tax Reduction (CTR).
Council Tax is a priority payment because debt could lead to your council taking you to the magistrate’s court. This could lead to:
- bailiff enforcement
- money being taken from your wages or benefits
- debt being secured against your home
- Bankruptcy
- imprisonment
Whoever is named on the bill is responsible for paying – if more than one person is named on the bill, each person will be liable for the whole amount, not only the share they’ve agreed to pay. This is called joint and several liability
Can I pay less for my Council Tax?
You might be able to pay less council tax or not pay it at all depending on your circumstances.
Council Tax Discount
You might be able to get a council tax discount for your property if
- no one lives there
- you live alone
- you live alone apart from a live-in care worker
- You or people you live with are full-time students or apprentices
- Someone in the household has a severe mental impairment
- You live in a larger property than you would need if you or another person living with you were not disabled
Find out about getting a council tax discount on GOV.UK.
Council Tax Reduction
If you’re on a low income you might be able to get your council tax reduced. If you get benefits or have other people living with you, this might affect how much your council tax is reduced by.
Your local council will ask you details about your income, savings and your circumstances, so they can work out if you’re entitled to Council Tax Reduction (CTR). They will then work out your new bill and tell you how much council tax you need to pay.
If you have other people living with you who are aged 18 or over, you might all be responsible for paying council tax. Only one of you needs to apply for CTR.
If you’re awarded CTR, you won’t normally get an actual payment. The council will reduce the amount of council tax you have to pay.
Depending on where you live, Council Tax Reduction (CTR) might be:
- a discount worked out as a percentage of your council tax bill
- a discount of an amount set out in the scheme
- a discount equal to the whole amount of the council tax bill i.e. your council tax is fully covered
Find out about getting a council tax reduction on GOV.UK
You can also contact your local Citizens Advice to find out how to apply for a discount or reduction. www.citizensadvice.org.uk/housing/council-tax/council-tax/