Home insurance is designed to protect what is often your most valuable asset and everything inside it. Whether you are a homeowner, tenant, or landlord, understanding the types of cover available and what they include can save you from devastating financial loss. This guide cuts through the jargon and helps you find the right level of protection for your circumstances.
Buildings vs Contents Insurance
Buildings insurance covers the physical structure of your home, including walls, roof, floors, and permanent fixtures like fitted kitchens and bathrooms. Contents insurance covers your personal belongings such as furniture, electronics, clothing, and jewellery. Most homeowners need both, while renters typically only need contents cover as the landlord is responsible for the building.
What Home Insurance Covers
A standard policy typically covers damage from fire, flood, storm, theft, vandalism, subsidence, and escape of water. Many policies also include accidental damage as standard or as an optional extra. Cover for high-value items such as engagement rings or art collections may need to be specified separately. Always read the policy schedule and exclusions carefully before purchasing.
How to Reduce Your Premium
Installing approved security features such as deadlocks, burglar alarms, and smart doorbells can reduce your premium. Increasing your voluntary excess lowers your annual cost but means paying more if you claim. Building up a no-claims discount over several years is one of the most effective ways to reduce costs. Paying annually rather than monthly also avoids interest charges that typically add 10–15% to the total cost.
When to Make a Claim
Consider whether the cost of the damage exceeds your excess before making a claim. Small claims may not be worth pursuing if they risk increasing your future premiums or losing your no-claims discount. For significant events such as flood damage, subsidence, or theft, contact your insurer as soon as possible and document the damage with photographs.
Key Takeaways
- Homeowners need both buildings and contents insurance; renters usually need contents only.
- Standard cover includes fire, flood, theft, storm, and escape of water.
- Security upgrades and no-claims discounts can significantly reduce premiums.
- Always compare policies on both price and the breadth of cover provided.
Frequently Asked Questions
Is home insurance a legal requirement?
It is not a legal requirement, but most mortgage lenders require buildings insurance as a condition of your mortgage.
What is accidental damage cover?
It covers unexpected and unintentional damage such as spilling paint on a carpet or drilling through a pipe.
Can I change my insurer mid-policy?
Yes, though you may face cancellation fees. Check your policy terms and compare the cost against waiting until renewal.
Written by
Sarah Mitchell
ACII, Chartered Insurance Broker
This guide has been written and fact-checked by a qualified professional to ensure accuracy. All information is regularly reviewed and updated. Wisehande editorial standards require expert authorship and peer review for every guide we publish.
