A home insurance policy can hinge on the extras

Home insurance is one of the most competitive products on the market. Comparing different products in this area isn't easy, since the features can seem very different even if the prices are relatively similar. What is distinguishing many home and contents policies from others these days can be the extras. Royal & Sun Alliance is hoping its latest home insurance policy, Safehome, will strike a chord with homeowners and brokers, bringing new features which include:

buildings and contents insurance for accidental damage as well as normal specified risks;

new-for-old cover for building or contents damaged by an insured event;

automatic cover for personal possessions (maximum £2,000 per item) taken outside the home;

cover for up to £1,500 in fire brigade call-out charges and £20per-day cover for jury service up to a maximum of £500;

an automatic 10 per cent increase in cover for contents at Christmas and before and after a wedding;

free personal accident cover for the first year of insurance.

This new policy also recognises that many more people are using their home for business purposes and have included automatic cover for £3,000 worth of business equipment; for up to six B&B guests or if you are providing child-careservices for up to two children (not your own).Another attractive feature of this policy is that you can also opt for an annual holiday travel insurance option for yourself (£100), you and your spouse (£115) or your whole family (£130). You need to be under 75 and it costs extra if you add winter sports (£30 extra) and vehicle breakdowns (£45 extra) under the contract. These rates are very attractive, but make sure to check the fine print for various levels of cover (such as hospitalisation benefits, air ambulances etc.) and exclusions.

Unlike some home insurance contracts that automatically offer you half the value of your buildings as contents cover, this one lets you choose contents at 30, 40 or 50 per cent of the value of your buildings. It is important to choose the right level of cover because you could get hit by an "averaging" clause whichcould cut any claim benefit if you have underinsured your property. Since policy discounts of up to 25 per cent of the premium can also apply - for example, you get 5 per cent off for simply being over 45 and another 20 per cent if you have an approved NSAI burglar alarm connected to a central station - you should certainly ask your broker to compare it carefully to others on the market.