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Home Insurance
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What Is Home Insurance?
Home insurance protects your house if something were to go wrong. The insurance can cover a variety of scenarios, which will vary depending on the level of cover you choose to take. Broadly speaking, it can cover repairs for damage, replacement of damaged or stolen goods, legal cover, etc.
Home insurance is broken down into building insurance and contents insurance. If you need both types, it is usually more cost-effective to buy them as a combined policy.
The average combined home insurance policy (building and contents insurance) for a house was £141.83 for Q4 2021, according to Money Supermarket.
Building Insurance
Building insurance covers the structure of the building (e.g. walls, roof, etc.) in case of any damage and repairs that need to take place. Building insurance isn’t compulsory, however, if you are using a mortgage, then it’s likely the mortgage provider will require that you have adequate building insurance in place.
It’s important to note that your policy may not include accidental damage, however, this can usually be added on at an extra cost.
In Q4 2021, average premiums for building only insurance policies were around £117/yr (Money Supermarket).
Contents Insurance
Contents insurance covers the items inside of the property in case they are lost, damaged or stolen. As an add-on, you can also cover items that you may take outside of your home, such as phones and laptops.
How to Find Home Insurance
Comparison websites, such as Money Supermarket or Compare the Market, are a good place to start. These sites will give you quotes based on the type of insurance you require. Once you have a ballpark figure, you can start comparing deals.
If you have particularly complex circumstances, you may also find it useful to speak to an insurance broker regarding your specific needs.
References
MoneySuperMarket. 2022. Home Insurance – UK Price Index. [online] Available at: <https://www.moneysupermarket.com/home-insurance/price-comparison-index/> [Accessed 15 May 2022].
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