Best Home insurance guide

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Get a home insurance quote
Home insurance explained

Your home and its contents is likely to be the biggest investment of your life, so it’s pretty much guaranteed that you’re going to want to protect it with a good home insurance policy. To help you make a more informed choice, we’ve compiled a home insurance guide that explains what home insurance is, why you need it, what information you’ll need to provide when you get a quote and how you can lower your risk to reduce your premium.
So what is home insurance and why do I need it?

Home insurance covers two areas – buildings insurance, which will cover you for physical loss and damage to your property, and contents insurance which protects the possessions and furniture you keep in your property.

Buildings insurance covers the structure of your home and its permanent fixtures and fittings, such as fitted kitchens and sanitary ware. Many policies also include cover for outbuildings such as greenhouses, sheds and garages along with accidental damage to underground pipes, cables and glass in doors and windows. It’s important that you check any policy you are thinking of buying carefully to see what it covers.

Buildings insurance typically covers damage caused by flood, fire or subsidence, theft, storms or malicious damage.

It’s worth noting that when you take out a mortgage, most lenders make it a condition that you have buildings insurance in place. They may themselves give you a quote for buildings cover, but don’t feel obliged to take out the cover they offer – instead it makes sense to shop around and find a policy that is best suited to your needs both cover wise and financially.

Contents insurance is just as important to protect the valuable possessions you gather through the years. Imagine being broken into and having all of your electrical items stolen. A good quality insurance policy will not only give you peace of mind that you can get the items replaced, but knowing you are properly covered can considerably ease the distress caused by having to make a claim.

A good guide for contents insurance is that it should include just about everything you would take with you if you moved house such as furniture, household goods, kitchen equipment, frozen food and drink, televisions, cds, computer and audio equipment, personal items and valuables.

Many people don’t realise how much it would cost to replace their clothing should anything happen to it. Whether you have a wardrobe full of designer clothes or you prefer high street fashions, the cost will soon add up.

Common contents claims can arise from being burgled or a fire, but a policy may also cover you if your possessions are damaged or lost as a result of an explosion, a water leak or if your home is vandalised.

Many insurers cover the cost of replacing locks if your keys are stolen, but you should check if there is an excess to pay for this type of claim as it could be more expensive than the cost of replacing them yourself. Most policies offer accidental damage but the extent of cover varies between insurance companies. You can sometimes add extra accidental damage cover to the policy for an additional cost.
What about additional protection?

Most insurance policies offer additional areas of protection, such as accidental damage cover, home emergency cover and legal expenses cover etc. These may be included as standard within your home insurance policy or you may have to pay extra to have them included. Check the policy documents to see exactly what is covered and if you then decide you want more protection, you can pay extra for more cover.
Are all home insurance policies the same?

Insurance companies offer a range of different policies depending on what you need to cover. Some offer ‘new for old’ contents cover, which means that if your possessions are ruined, they will be replaced with new ones, whereas other companies provide ‘wear and tear’ cover where a percentage of what you are paid will be deducted for depreciation (similar to buying a car, where its value reduces each year of use).
What policy documentation will I receive?

Once you have taken out a home insurance policy, your insurance company will send you:

* A demands and needs statement that outlines the information upon which your insurance is based
* An insurance schedule
* A ‘keyfacts’ policy summary
* A policy booklet (or they will tell you where you can access one)

The policy booklet sets out all the terms and conditions of your policy. It will tell you exactly what your policy covers and what to do if you need to contact your insurance company.

Remember! You should always read all the documents sent to you to make sure all the details are correct and that you have the level of cover you need. If you have any concerns or queries, contact your insurer.

If the information you give to your insurer is not correct, it could invalidate your insurance if you have to make a claim against your policy, which means the insurer may not pay out for your claim.

You also need to tell your insurance company everything you believe to be relevant or important that may affect your policy.

Remember! Keep all your policy documents in a safe place just in case you do need to make a claim.

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