Buildings vs Contents Insurance
Buildings insurance covers the structure of your home including walls, roof, floors, and permanent fixtures like fitted kitchens and bathrooms. It protects against damage from fire, flooding, subsidence, and storms. If you have a mortgage, your lender will typically require buildings insurance. Contents insurance covers your personal belongings including furniture, electronics, clothing, and valuables. Renters generally only need contents insurance, while homeowners should consider both.
What Does Home Insurance Cover?
Standard home insurance covers damage from specific events like fire, theft, flooding, storms, and escape of water. Accidental damage cover is usually an optional extra and protects against everyday mishaps like spilling paint on carpets or putting a foot through the ceiling. Personal possessions cover extends protection to items you take outside the home, like laptops and phones. Home emergency cover provides help for urgent situations like boiler breakdowns, burst pipes, or lost keys.
How to Get the Best Deal
The key to saving on home insurance is comparing quotes from multiple providers each year, rather than automatically renewing. Make sure you accurately value your contents using an online calculator, as over-insuring means paying too much, while under-insuring could leave you short if you need to claim. Consider the excess amount carefully, as a higher excess reduces your premium but means you pay more out of pocket for each claim. Look at the policy details rather than just the price, as the cheapest policy may not provide adequate cover when you need it most.