What is house insurance?
For most people, a home will be the biggest single purchase they ever make. Not only that, but it’s also the place people keep most of their belongings. That’s why home insurance is so important. It could save you a lot of hassle if something serious were to happen to your home or possessions.
Explaining house insurance
Further information on the types of home insurance, or a quote, can be found here.
There are two main types of home insurance
Home contents insurance
This provides cover for the things you keep inside your home – valuables (e.g. jewellery), clothes, gadgets, free-standing appliances and even items like curtains and carpets. In the event that any of these things are stolen or damaged, you should receive a payout to help you cover the cost (as long as you’re eligible to claim).
Different policies can vary widely – with different terms and conditions – so make sure you check these before you choose your insurance policy.
For example, home contents insurance may provide cover for items you’d take outside the home – such as MP3 players – but not all policies do, so check with your insurer in advance if you need this type of cover.
Buildings insurance
This provides cover for the building itself, including walls, windows and some built-in appliances, fixtures and fittings. Buildings insurance should provide a payout if any of these things are damaged, e.g. by natural disaster, fire or flood (as long as you meet all other claims criteria).
Again, there will be terms and conditions associated with your policy that you should check before you commit yourself, to ensure you receive the cover you need. For example, if you’re in a known flood-risk area, you should make sure your insurance covers you for this.
Do I need home insurance?
Contents insurance may not be a legal requirement, but buildings insurance will be required by your mortgage lender if you’re a homeowner. And even though home contents insurance isn’t compulsory, going without could leave you seriously underprotected.
How much do you think your home contents are worth in total? £5,000? £10,000? A few years ago, a report by the Centre for Economic and Business Research (CEBR) found that the average UK household has contents worth around £44,500