Your guide to home insurance

Engaging with your home insurance requirements can be challenging but running the risk of not tuning in and getting the most suitable cover – and the right level of cover – could be financially devastating if an unwelcome event were to occur. 

Although home insurance is not required legally, there is a good chance that at some point you will need it. ABI data¹ shows that home insurers pay out over £8m to customers every day, highlighting the vital role that it has to play. Unexpected financial setbacks could take you years to recover from. It’s strongly advisable to protect your home with two types of insurance – buildings and contents. 

Do I need home insurance?

If you own your own home, you need to have buildings insurance. Your mortgage lender will usually stipulate this as a condition of granting your loan, so not having a policy could put your mortgage and your home at risk. You will need to insure the rebuild cost, this is the amount of money you would need to completely rebuild your home. The cost of rebuilding your home isn’t the same as its market value and is usually less. That’s because the market value takes into account the value of the plot and land, location, local amenities, and supply and demand. Although there’s no requirement to have home contents insurance, it is a good idea to have cover in place in case the unexpected happens and your home is burgled, or your possessions are damaged by fire or flood.

What is buildings insurance?

Buildings insurance covers the structure and permanent fixtures of a property, including kitchens and bathrooms. Policies provide cover for the cost of repairing or rebuilding your home if it’s damaged.

What does contents insurance cover?

Home contents insurance covers all the things kept in a home including TVs, furniture and personal belongings. You can also include additional cover such as accidental damage that will insure personal items when they are used away from home such as laptops, jewellery and cameras. 

Should I buy buildings and contents insurance together?

Premiums can be lower if you buy your buildings and contents insurance from the same insurer. If there’s an event that affects both the building and your possessions, it can be more straightforward if the claim is managed by one insurer.

What about valuable items away from home?

Cover for belongings you have with you while you are away from home are not always covered under a standard contents policy but can usually be included at an additional cost. 

A vital shock-absorber

Home insurance is an effective shock-absorber that protects thousands of families each year from unexpected and unwelcome loss, damage and expense. We can help you get the right cover in place for your needs. 

As with all insurance policies, conditions and exclusions will apply. 
¹ABI, 2021

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