Home insurance stands as a crucial pillar in protecting one of life’s most significant investments: your home. Whether you're a first-time buyer or a seasoned homeowner, understanding how home insurance works—and what it really covers—can help you avoid costly mistakes and give you peace of mind.

This guide walks you through the essentials, from the different types of cover available to how to choose the right policy, make a claim, and save money on your premiums.

Why Home Insurance Matters

Imagine waking up to a burst pipe flooding your kitchen or coming home from holiday to find your belongings gone after a burglary. These situations are stressful enough without worrying about the financial fallout.

Home insurance isn't a legal requirement—but it’s often a condition of your mortgage, and it’s one of the smartest financial protections you can have. It can help cover the cost of repairs, rebuilding, and replacing possessions—protecting both your property and your peace of mind.

Types of Home Insurance Coverage

There are two main parts to home insurance: buildings insurance and contents insurance. You can buy them separately or as a combined policy. You may also want to consider add-ons for more complete protection.

1. Buildings Insurance

Covers the physical structure of your home—walls, roof, floors, windows, and permanent fixtures like fitted kitchens or bathrooms. It also includes outbuildings such as sheds or garages. If your home were destroyed or badly damaged, buildings insurance would cover the cost of rebuilding.

Essential if you own the property (freehold)
Not usually needed if you rent or have a leasehold flat
Don’t overestimate the rebuild cost—it’s not the same as your home’s market value

2. Contents Insurance

This covers everything you'd take with you if you moved—furniture, clothes, tech, jewellery, bikes, and even kitchen appliances if not built-in.

Important whether you rent or own
Underinsuring is a common mistake—be accurate about the total value
High-value items may need to be listed individually (e.g. jewellery or artwork)

3. Combined Policy

Most insurers offer combined buildings and contents insurance for convenience and potential cost savings. This is a good option if you’re a homeowner and want a single policy to manage.

4. Accidental Damage Cover

This optional extra covers unexpected mishaps—like red wine on the carpet, or drilling through a pipe. Some policies include limited accidental damage by default (e.g. for TVs or laptops).

5. Home Emergency Cover

Covers urgent repairs such as boiler breakdowns, burst pipes or pest infestations. Often includes 24/7 emergency callouts and access to vetted tradespeople.

Who Needs What?

Renters: Responsible for contents cover. Landlord covers the building.
Students: May already be covered under a parent’s home policy—check the small print.
Landlords: Need landlord insurance with building cover, loss of rent protection, and public liability.
Flat Sharers: Consider joint or individual policies—depends who owns what.
Second/Holiday Homes: Require specialist cover for periods when the property is unoccupied or let out.

What Home Insurance Covers

What’s Usually Covered

Fire, flood, and storm damage
Theft and burglary
Vandalism or malicious damage
Burst pipes and water leaks
Subsidence
Accidental damage (if added)
Personal liability (e.g. visitor injuries)

What’s Not Usually Covered

Damage from pets
General wear and tear
Cosmetic damage
Loss of items outside home (unless added)
Leaving belongings unattended
Damage under influence of drugs/alcohol

📌 Tip: If you own items worth over £1,000—like laptops, bikes, or jewellery—check if they need to be listed individually on your policy to be covered.

Tips when Choosing the Right Home Insurance Policy

Home Insurance Checklist

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Calculate your rebuild and contents values Don’t guess—use your mortgage lender’s estimate for rebuild costs and a room-by-room guide for contents.
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Compare policies—not just prices The cheapest policy isn’t always the best. Check cover limits, exclusions, and customer reviews.
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Understand the excess A higher excess can reduce your premium, but make sure it’s affordable if you do need to claim.
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Consider add-ons Do you need accidental damage, home emergency, or legal expenses cover? Many insurers let you customise your policy.
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Don’t auto-renew Insurers often hike prices at renewal. Compare quotes each year and switch if needed—you could save hundreds.
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Check exclusions and small print Exclusions vary by insurer. Always read the full policy wording to avoid surprises.

How to Get Cheaper Home Insurance

Don't over-insure

Overestimating your home's rebuild cost or contents value can lead to higher premiums. Use your mortgage lender’s estimate or an online rebuild calculator. For contents, go room by room and total up what everything is realistically worth.

Improve home security

Many insurers offer discounts for approved locks, burglar alarms, or smart security systems. Enhancing your home’s security reduces your risk and could lower your premium.

Pay annually

Paying monthly often includes interest or finance charges. If you can afford to pay in one go, choosing annual payment usually saves money in the long run.

Avoid unnecessary add-ons

Optional extras like legal cover or home emergency assistance can bump up your costs. Only pay for them if they’re genuinely useful to your situation.

Bundle policies

Combining home and car insurance with the same provider often unlocks multi-policy discounts. It can also simplify your admin.

Build a no-claims discount

Insurers reward customers who haven’t made claims with discounts. If the damage is minor, it might be cheaper to cover the cost yourself to keep your no-claims streak going.

Increase your voluntary excess

A higher excess usually brings down your premium—but only choose an amount you could afford to pay out of pocket if you needed to make a claim.

How to make a claim:

Each insurer is different, but the basic steps are usually the same:

1

Contact your insurer as soon as possible

Don’t delay. Most insurers have strict timeframes for reporting incidents—especially for theft or serious damage.

2

Provide proof

This could include photos of the damage, original receipts, police reports, or an assessment from a loss adjuster.

3

Don’t throw anything away

Hold onto damaged items or materials until your insurer tells you it’s okay—they may need to inspect them.

4

Keep a record of all communication

Log phone calls, emails, and names of people you spoke with. This helps in case of disputes or delays.

5

Escalate if necessary

If your claim is rejected and you think it was unfair, raise a complaint with the insurer. Still unhappy? Escalate to the Financial Ombudsman Service.

Finding a policy

We can’t recommend specific insurance policies, but there are several comparison sites available that let you quickly compare prices, features, and cover levels to find a policy that suits your trip.

Summary

Home insurance isn't just a checkbox—it's an essential part of financial planning. Whether you're protecting a modest flat or a large family home, the right policy gives you financial security and peace of mind.

Take time to assess what you really need, shop around for value (not just price), and review your cover regularly. That way, when the unexpected happens, you’re not left out of pocket—or out of options.

Home Insurance