Home Insurance Explained

Navigating the world of home insurance can be quite complex, with a myriad of different policies and protections on offer. This article aims to demystify the key types of home insurance available, discussing their relevance, and explaining what they typically cover.

Buildings Insurance

Let’s start with buildings insurance, a must-have for homeowners. This insurance covers the structure of your home – the bricks and mortar, so to speak. If your home were to suffer damage due to unforeseen events like fire, flood, storm, or subsidence, buildings insurance would cover the cost of repairs. Importantly, the insurance should cover the total rebuild cost of your home, not merely its market value. This is because rebuilding a home can sometimes cost more (or quite often much less) than what it’s currently worth in the property market.

Generally, buildings insurance covers permanent fixtures and fittings too, like kitchen units, built-in wardrobes, and bathroom suites. For an extensive list of what this type of insurance includes, visit the Money Helper.

Contents Insurance

The other common type of home insurance is contents insurance, which covers items in your home that aren’t part of the structure or permanent fittings. This typically includes furniture, electronics, personal belongings, and even some types of flooring. These are items that you’d likely take with you if you moved house. Compare The Market provides a comprehensive definition of what falls under contents.

Tenants Home Insurance

For those renting their homes, specific tenants’ insurance is available. While the building insurance is generally the responsibility of the landlord, a tenants’ insurance policy covers your personal belongings within the property. This is an excellent idea as it provides protection against loss or damage to your possessions, which aren’t covered by your landlord’s insurance.

Landlord Insurance

Speaking of landlords, they require a different type of insurance altogether, known as landlord insurance. This differs from homeowners’ insurance as it provides cover not just for the building, but also for landlord-specific risks. These could include loss of rent due to property damage, legal expenses, and liability if a tenant or visitor is injured in the property. The Which website gives more details about landlord insurance.

Those are the main insurance covers for your home, next we look at the most common extra cover.

Accidental Damage Cover

An aspect of home insurance to consider, especially if you boisterous pets or younger children, is accidental damage cover. While not always included as standard in home insurance policies, it can be added as an extra for an additional premium. This type of cover protects against unintentional events, like spilling red wine on a new carpet or knocking over a valuable vase.

Cover For Items Away From Home

Some insurance policies also offer protection for personal belongings away from home. This covers items like jewellery, laptops, or cameras, which you often take outside your home. This can be especially beneficial for items that are expensive to replace.

Home Insurance Tips

It’s crucial to remember that every home insurance policy is different, so always read the terms and conditions and the schedule carefully to understand what is and isn’t covered. Also, consider the value of your possessions and the potential cost of rebuilding your home to decide the level of cover you need. When comparing policies make sure the cover levels are the same and the excess payments. An excess is the amount that you have to contribute when making a claim. Some policies might have a much higher excess and a lower premium, which is fine as long as you are aware that is why the policy is more economical. It’s about finding the right balance of cost and protection that suits your individual needs.

Regardless of whether you own or rent, live in a flat or a country mansion, ensuring that your home and belongings are adequately protected should be a priority. Home insurance offers a financial safety net should the unexpected happen. It may not be able to replace the sentimental value of lost or damaged possessions, but it can certainly ease the financial burden.

This article is merely a starting point to help you understand the landscape of home insurance. If in any doubt, consult with a professional insurance advisor for personalised advice tailored to your specific circumstances.