What Types of Home Insurance Are There?

When it comes to home insurance in the UK, there are two main types: buildings insurance and contents insurance.

Buildings insurance covers the structure of your home, including walls, roof, and permanent fixtures like fitted kitchens or bathrooms. This type of policy is essential if you own your home, as it protects you from damages caused by events like fires, floods, or storms.

Contents insurance, on the other hand, covers personal belongings such as furniture, electronics, and clothing. Many homeowners choose to combine both types of insurance to get full protection for both their home and its contents.

Home Contents, Home Building or Both?

Whether you need buildings insurance, contents insurance, or both depends on your circumstances. If you own your property, especially with a mortgage, buildings insurance is usually mandatory to cover the cost of repairs or rebuilding in case of damage. Contents insurance, however, is optional but highly recommended, as it protects your belongings against theft, damage, or loss. For renters, contents insurance is the key focus, since landlords typically have the building covered.

Combining buildings and contents insurance often offers convenience and can sometimes save you money through discounts for bundled policies – this combination is often simply referred to as Home Insurance.

Why Do I Need to Calculate the Value of My Home Contents for an Insurance Quote?

Accurately calculating the value of your home contents is essential when getting an insurance quote because it ensures you have the right level of cover. If you underestimate the total value of your belongings, you could end up underinsured, meaning your insurer might not pay out enough to replace everything in the event of a claim. On the other hand, overestimating can lead to higher premiums than necessary. Insurers need to know the replacement cost of your items—what it would take to buy new equivalents—so that in the unfortunate event of theft, fire, or other damage, you’re properly covered without paying more than you should.

How Do I Calculate the Contents Cover I Need?

Calculating the right level of contents insurance can feel daunting, but it’s simpler than it seems.

Start by making an inventory of everything in your home—from furniture and appliances to jewellery and electronics. Estimate the replacement cost of each item rather than its current value. Remember, most contents insurance is likely to replace items with new equivalents, not what they might fetch second-hand. It’s worth paying particular attention to high-value items, which may need additional cover. Don’t underestimate the value of everyday items either—when you add up clothes, kitchenware, and other essentials, it can really mount up!

What Features Should I Look For in a Good Value Home Buildings Policy?

A good value home buildings insurance policy isn’t just about price; it’s about ensuring your home is adequately protected. Look for a policy that offers cover for major risks like fire, flood, storm damage, and subsidence. Some policies will include accidental damage to the structure, while others might charge extra for this. Make sure to check for rebuild cost cover – this should match the cost to completely rebuild your home from scratch. Also, consider whether the policy includes extras like alternative accommodation, should your home become uninhabitable, and a no-claims discount for keeping your premium down over time.

Why Is Home Insurance So Expensive in Recent Years?

You aren’t the only person to ask this – we’ve all seen premiums increase dramatically, and there are some pretty sound reasons why. Rising costs in construction materials and labour have driven up the price of repairs and rebuilds, which insurers account for when calculating premiums. Additionally, extreme weather events like floods and storms have become more frequent, increasing the number of claims made and adding to overall costs.

How can I keep the costs down?

To keep premiums down, homeowners can take several steps. Installing security features like burglar alarms, secure locks, and smoke detectors can reduce the risk of damage or theft, leading to discounts. It’s also wise to shop around for quotes, as different insurers may offer better deals. Bundling buildings and contents insurance with the same provider can sometimes bring savings too. Finally, raising your excess—the amount you pay towards any claim—can lower your monthly premium, but only do this if you can comfortably afford it in case of an incident.

Compare Other UK Insurance Quotes

Compare quotes for a range of different types of Insurance. Take a look at these Insurance categories and remember, whatever you select, it will always be quick and easy to find the right Insurance at the best price for you.

On The Road

Home & Buildings

Business, Work & Trade

Travel, Holidays & Leisure

Personal, Family & Pets