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Home insurance provides financial protection if your home or belongings are damaged, stolen, or destroyed by unexpected events such as burglary, fire, flood, or accidental damage. The right policy can give you peace of mind and the money needed to put things right.

What Does Home Insurance Cover?

The purpose of home insurance is to cover the cost of repairing or replacing items when things go wrong. Typical cover includes:

• Replacing stolen possessions after a burglary
  

• Repairing storm or weather damage
  

• Rebuilding costs after a fire or flood
  

To make a claim, you’ll need to contact your insurer, who will assess whether you’re covered and how much they’ll pay. You’ll usually pay a portion of the claim yourself, called an excess, typically between £50 and £250 (sometimes higher for issues like subsidence). This amount is agreed when you take out the policy.

Standard Cover

Most policies include protection against:

• Theft
  

• Fire
  

• Flood
  

• Loss
  

Optional Extras

You can often pay more to add:

• Cover for items lost or stolen outside the home
  

• Emergency repairs (e.g. boiler breakdown, burst pipes)
  

• Higher limits for valuable items
  

• Comprehensive accidental damage cover
  

Note: Home insurance won’t cover deliberate damage or wear and tear.

Types of Home Insurance

There are two main types of home insurance, and you can buy them separately or together:

1. Buildings Insurance – covers the structure of your home (walls, roof, floors, and permanent fixtures).
   

2. Contents Insurance – covers your belongings inside the home.
   

Most homeowners choose both, especially if they have a mortgage (where buildings insurance is usually required). Even without a mortgage, having both is sensible to avoid paying large costs yourself.

Leaseholders

• If your property is leasehold (e.g. flats), buildings insurance may be arranged by the freeholder and included in your service charges.
  

• If you share the freehold, you and the other owners are jointly responsible. Always ask for a cost breakdown to check if you’re getting value for money.
  

Renters

Tenants don’t need buildings insurance—that’s the landlord’s responsibility—but should arrange contents insurance to protect their belongings.

Landlords

Landlords typically need buildings insurance, but contents cover is also useful if the property is furnished. Many opt for specialist landlord insurance, which can also include:

• Rental income protection
  

• Liability cover for damage or injury to tenants
  

How Much Cover Do You Need?

When applying for home insurance, you’ll need to estimate:

• The cost of rebuilding your home
  

• The cost of replacing all your belongings
  

This sets the cover limit (the maximum payout). Some insurers offer unlimited cover, but these policies are usually more expensive.

Tools to Help

• Free online calculators can help you estimate rebuild and replacement costs.
  

• A property survey (from when you purchased your home) may also list a rebuild value.
  

Getting the Best Deal on Home Insurance

• Shop around: Never just auto-renew—compare quotes for better deals.
  

• Combine policies: Buying buildings and contents cover together often saves money.
  

• Pay annually: Monthly payments usually cost more.
  

• Increase your excess: Agreeing to pay more towards a claim can lower premiums.
  

• Improve home security: Install certified locks, smoke alarms, burglar alarms, or join a neighbourhood watch scheme.
  

• Check existing cover: Some bank accounts include basic home emergency protection.
  

Build a No-Claims Discount

If you don’t make a claim during the year, you’ll usually earn a no-claims bonus, which reduces future premiums. The discount grows over time, up to the maximum set by your insurer.