Home insurance

Your home is normally your biggest investment and it's also where you live. If anything was to happen, like a fire, flood or a break-in, you'd want to know you could afford to repair the damage. That's why home insurance is so important

You'll probably want to look at:

  • Buildings insurance - if you own a property
  • Home contents insurance - if you own or rent your home

Buildings insurance
This covers just the actual building you live in - the bricks, roof, floors, doors and windows - and anything you can't take when you move, like fitted kitchens, bathroom fittings, fireplaces and wooden floors. It doesn't cover the contents of your home.

If you have a mortgage, your lender will insist you have buildings insurance. Normally you don't have to take out your lender's own insurance, and it is often cheaper not to.

If you rent your home, you won't usually need buildings insurance.

What's covered?
Most buildings insurance policies will normally pay for damage caused by things like:

  • Fire/flood, storm or lightning
  • Theft or attempted theft
  • Subsidence or heave (when the earth around your home expands or contracts causing the foundations to move)
  • Burst pipes, water tanks or boilers
  • If you choose to pay a bit extra, you can also add extra cover for accidental damage, which covers you for things like broken windows, or your foot going through the attic floor

What's not covered?
Buildings policies normally don't cover:

  • General wear and tear to your home
  • Broken fences
  • Damage caused by frost or poor maintenance eg damp caused by a dripping pipe rather than a burst pipe

If you have your buildings insurance with your mortgage provider, think about moving it! You'll often be able to save money. Remember when changing policies to compare like with like. Look at the cover each offers and the policy excesses.

Home contents insurance
Contents insurance covers the property in your home - your furniture, clothes, curtains, valuables, TV - really anything you'd take if you moved.

What's covered?
If you've got a contents policy you're normally covered if your possessions are stolen from your home or if they're damaged in your home by things like: fire, smoke, flood, storms or lightning, burst pipes, water tanks or boilers

What's not covered? Policies vary, but you normally aren't covered for:

  • General wear and tear to items
  • Accidents (like spilling paint on your carpet) unless you have taken out accidental damage cover as an extra option
  • Many policies don't pay out if your house is unoccupied for more than a set number of days - if you are planning a long trip, check with your insurer to make sure you're still covered

You may be able to save five to ten per cent by switching to a combined home contents and buildings insurance policy.

Optional cover
You can often add on the following optional cover, for an extra premium:

  • Accidental damage. Cover for accidents, like spilling paint on your carpet. Legal expenses cover
  • 'All risks' - this covers the theft or loss of items when you take them out of the home
  • Bicycles. These can usually be insured for an extra premium
  • Valuables, like rings and antiques

Things to think about when taking out home insurance

  • Is the cover sufficient for your needs?
  • Does the cover rise automatically to take account of inflation?
  • If you add a new conservatory or new kitchen, do you need extra buildings cover?
  • If you work from home, check if you're covered for things like your work PC etc

Remember to compare like with like when looking at policies:

  • Does your contents policy give you new for old replacements, or just enough to buy second hand replacements?
  • Are you covered for accidental damage, like spilling wine on your carpet?
  • Are your possessions covered outside the home?
  • What's the policy excess (the amount you pay) for different types of claims?
  • Do you have to pay extra for bicycles, boats and caravans?
  • What's the limit on the cover for the contents of your freezer?
  • Does the policy cover items in your garden or shed?
  • Do you have to insure valuables over a certain limit separately?
  • What's the limit for cash and other valuables - is it enough?

Making a claim
For information on making a claim visit our making a claim section.