UK Home Insurance

Home insurance involves insuring your home against unexpected problems. Many different providers are competing for your business so be sure to shop around for the most competitive home insurance quote.

In the UK home insurance is not compulsory, however if your property has been purchased with a mortgage, your lender will insist that you at least take out buildings insurance to protect the lender in the event of a catastrophe. Not only does it protect the lender, it protects your own interests in the property also, and is highly recommended whether you own the property outright or not.

You can expect your buildings insurance to protect you for such things as damage to the structure of the building, as well as drains, pipes, and permanent fixtures including sinks. It is important to remember that the cost of rebuilding your property is not the same as its market value; the cost to rebuild it could be less than its value, as the property value also includes the land it sits on. The rebuild cost could in fact be greater than the market value if specialist building materials (such as thatched roofs), or methods are going to be required.

Home contents insurance isn't normally a policy that the lender will insist you take out, however the value of an entire property worth of contents is very likely to be extremely costly to replace from your own savings. Carpets, electrical goods, computers, cameras, furniture and jewellery like rings and watches are all covered with or without accidental damage.

Accidental damage offers extra protection if you or anyone else causes damages to your property accidentally, and can be added to your buildings or contents policy. Examples of accidental damage are spilling paint on the carpet, or dropping your camera and breaking it.

You can obtain further home insurance under your buildings and contents policy, which are often offered as optional 'add-ons', and can include legal protection, and personal belongings cover that insures items you own and take outside of your home.

The important thing to understand is that all policies are different, that you should scrutinise your policy document to understand what you are and are not insured for.

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