Home Insurance

Why do I need Home Insurance?

Your home is probably your most treasured possession; in fact it's likely to be the most expensive item you'll ever purchase in your life.

That's why home insurance is so important - it's there to protect it.

Having a sufficient home insurance policy in place can help cover financial costs should your property be damaged or your possessions broken or stolen.

If you love your home, it's time to start loving home insurance (or at least thinking about it).

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What are the different types of home insurance?

When you start looking for a home insurance policy, you'll come across 2 different types: buildings insurance and contents insurance.

The names give it away a bit, but here's an explanation:

Buildings Insurance

This covers the actual structure of the building itself and is often taken out alongside your mortgage. Your mortgage lender will probably insist you have it, for their financial security as well as yours.

As well as covering damage to the actual bricks and mortar, buildings insurance usually covers permanent fixtures and fittings too. This includes things like doors, windows, skirting boards and bathroom fittings.

If your whole house burnt down, you could be pretty helpless without buildings insurance as you'd have to cover the costs out of your own pocket. Even a small fire or flood could result in significant repair and clean-up costs.

Contents Insurance

This covers the possessions inside your home. It normally covers things like furniture, electrical equipment, clothes, jewellery etc... Typically, anything you would take with you if you were to move house is classed as 'contents'.

Be aware that some high-value items may require their own separate insurance.

Many providers will offer you the chance to purchase buildings and contents insurance together, in some cases this could work out cheaper. However, you're able to buy them as separate policies from two different providers if that works best for you. Just remember that in the event of a claim you may have to deal with two insurers - if there's damage to both buildings and contents. With this in mind, you may prefer to have both under the one policy to make the claims process easier.

Policies vary between providers, but most home insurance should cover you for the nasties mentioned below:

  • Fire
  • Storms and flooding
  • Falling trees
  • Lightning strikes
  • Explosions and earthquakes
  • Subsidence (unstable ground beneath your house), heave and landslip
  • Aircraft or falling objects from an aircraft
  • Theft
  • Riot or malicious activity
  • Water and oil leaks
  • Damage to the property made by vehicles or animals
  • Broken or collapsed aerials

Always check your policy documents carefully to make sure you know what you're covered for.