Differences between home insurance policy types

There are many differences in the types of home insurance policies you can buy to protect your home and your possessions.

Buildings insurance

If you have a mortgage then you’ll usually be required by your mortgage provider to have valid and comprehensive buildings insurance. This is because the mortgage company needs to be satisfied that if the house were to be destroyed, they can recoup the money they lent you to buy the house in the first place. After all, your home is their investment until you have paid your mortgage off.

Contents insurance

This is an insurance policy that covers the contents of your house. It’s not usually insisted on by a mortgage company as they have no financial interest in your possessions. This type of policy will include replacement of your personal possessions such as jewellery, furniture, televisions, computers or bikes in the event that they are damaged or destroyed.

You can also include, for example, the contents of your freezer in the event of a power failure. Some insurance companies also offer cover for personal possessions, up to a specified amount, when taken away from your home. What if your car is broken in to and your handbag is stolen? Or you lose a piece of jewellery while you’re shopping? Clauses can also be added if you have children away at university so they are covered at their temporary place of residence.

These policies can be tailored to match your possessions and specific valuable items should be named on the policy. Accidental damage to your property in and out of the home is also sometimes included as an extra feature of a home contents package. Combined buildings and contents insurance is often offered by insurance companies and they may offer cheaper deals if you take out both policies with them.

Other types of policies

There’s a myriad of other types of insurance policies that can be tailored to specifically suit your requirements. These include guest house, holiday home or second home insurance, flat insurance, empty house/unoccupied home insurance, mobile/motor/park home insurance and landlord insurance.

There are endless combinations and types of policies on the market today with many hundreds of insurance providers claiming to offer the best deals. It’s important to find the right one for you by researching the market, finding out what’s available and understanding exactly what you need to protect not only your home and its contents but also your peace of mind.

Read more in our home insurance guides or get a quote now.