House Insurance explained

From a straightforward burglary to a building-related disaster, nearly every home is at risk from some form of upset or another. While an insurance company cannot repair the emotional damage of a fire or theft, it can provide someone with adequate financial compensation for what they have lost. A house insurance policy is therefore one of the first things many people arrange when they move into a new house or flat.

House insurance is available from every major UK insurance provider, plus a few smaller and more specialist firms. Even banks and supermarkets are now widely known to offer cover. Although typically a relatively inexpensive product, home cover quotes can vary widely from a few pounds per month upwards.

Cover comes in two forms - buildings insurance and contents insurance. Some people will need both while others will only need one type of protection. Buildings insurance protects the actual structure of the property from damage, be it through earthquake, flooding, or something like subsidence (Though note that subsidence cover is no longer always offered as standard and you may have to pay extra for this protection). Again, an insurance policy is not going to change the fact a home is knee deep in water, but it will provide cash to repair the damage. Generally speaking, buildings insurance will include kitchen and bathroom fittings, and other permanent fixtures - more on this later.

Contents insurance protects the general belongings kept inside the home. Here we are talking about regular personal property in the form of electrical appliances like televisions and computer consoles, furniture including sofas and tables, smaller items like books and CDs, kitchenware and appliances, jewellery and clothing. Pretty much anything you would take with you if you were to move house is normally covered by this type of product.

If you rent where you are living you will generally not need buildings insurance - if the property does not belong to you the landlord should have this in place with landlords insurance. You will however need contents insurance against the likes of burglary or fire. Likewise, if you’re a landlord who rents out a house which does not generally have any of your personal property in it, you’ll only need buildings insurance.

When comparing house insurance policies, the key is not to look only at the price but also at what is included. For example, insurers differ in what they class as being eligible for buildings insurance. Some firms will allow you to insure a garden shed as a matter of course, while others will not. Some policies will include protection for exterior walls and paved driveways, others will not.

Contents insurance has some similar differences between providers. Many will offer accidental damage, meaning a payout can be applied for if you drop or smash a valuable item like an mP3 player within the home. Some will even offer you cover for some items if you take them out of the house.

House insurance could be kept as low as possible by making sure the home is as secure as possible. Fitting alarms, superior door locks and other measures could help bring down the cost of a premium. Smoke alarms may also help. Another common trap people fall into is undertaking major DIY building work without first consulting their insurer. If they happen to damage the property’s structure, they may not be covered for this if they are not a qualified professional.