Getting the right home Insurance for you

Q) Are all Home Insurance policies the same?

A) No, all Insurance policies are not the same. The areas and level of protection offered to your home will vary from policy to policy. As a result the home insurance policies will also vary in price.

Q) How can I obtain the right home insurance product for me?

A) There are various different home insurance providers, offering different types of home insurance policies. It is therefore recommended that you compare and contrast different policies, in order to match your requirements with the level of protection offered by the home insurance policy.

Here are some of the specific areas of the policy that you need to look at:


Specified amount or limit of buildings cover protection
Specified amount or limit of contents cover protection
Specified single articles amount
Excess amount
Additional areas of protection included as standard or optional extras - e.g. Accidental Damage
Q) People say that building insurance is 'compulsory' while contents cover is 'voluntary' - is this so?

A) Strictly speaking, both building and contents insurance are both optional, but it's wise to have both.

Building Insurance: When you take out a mortgage to purchase your home, the lender will insist you have this cover. If the property were to fall down, the lender would want to know that there is insurance to cover such a catastrophe. For this reason, most people are sold building insurance at the time they take out a home loan.

Contents Insurance: cover for your possessions, such as your television, furniture and carpets. Additionally, the policy provides liability insurance. If someone were to visit your home, trip and injure themselves, they may make a claim against you. Such a claim could be for a considerable amount.

Q) In the case of buildings insurance - what's covered?

A) In addition to the structure, a building policy covers permanent fixtures and fittings such as baths, toilets and fitted kitchens, bedroom cupboards and interior decorations. The test is - can the fixture reasonably be removed and taken to a new home e.g. fitted cabinets. Policies usually extend to include outbuildings such as garages, greenhouses and garden sheds. Boundary walls, fences, gates, paths, drives and swimming pools may not be covered. The policy may also provide you with alternative accommodation if your home is uninhabitable. The main risks, which your property faces, include fire, theft and damage caused by subsidence.

Q) In the case of home contents insurance - what's covered?

A) A contents policy covers just about everything you would take with you if you moved. Furniture, household goods, kitchen equipment, frozen food and drink, televisions, video, computer and audio equipment, personal items and valuables up to stated limits. Also remember items such as CD's and videos, as their collective cost is often under-estimated. Additionally, clothing soon adds up, whether your wardrobe is full of jeans or designer suits, make sure you include the cost of replacing them.

Most policies cover loss or damage to your possessions while in your home caused by risks such as fire, theft, and flooding. Many policies include accidental breakage of mirrors and glass tops. Some policies cover accidental damage to television, videos, home computers and audio equipment - in any event, you can often extend the policy to cover accidental damage to all items. Items removed from the home such as laptops, cameras etc. may not be covered within the standard home insurance policy and hence you may require extended contents cover, which will protect these items outside of the home.

Q) How do I calculate my home insurance requirements?

A) Buildings: The insurance company will ask you to quote what the rebuild value of your home is. The re-build value of your home is the cost of re-building your property in the unlikely event that it is destroyed by fire etc. Please be aware that you value of your home does not reflect the rebuild value as it may be less or more than the value of your home. The rebuild value of your property can usually be found on your mortgage agreement, or the deeds to your home. However, please be aware that it is your responsibility to communicate the correct rebuilding cost to your insurer.

Contents: Make a list of the rooms in your house and under each heading write down all the items in it. Items most commonly overlooked include curtains, carpets, plants, ornaments and bedding, so don't for get to include them. Also check the cover on valuables such as jewellery, they may need to be covered separately. Once you have done this, total the individual amounts to see what your contents insurance protection amount you require.

Additional Protection: Most insurance policies offer additional areas of home insurance protection, such as Accidental Damage, Legal Expenses, Freezer Cover and Extended Contents etc. These areas of protection may be included as standard within the basic policy and hence will be reflected in the cost of the policy. Alternatively, some insurance policies offer these areas as optional, and hence you are able to choose whether you require these additional areas of protection or not. A simply way to assess whether you need this extra areas of protection are to ask yourself the 'what if scenarios', e.g. what if I accidentally spill paint on the carpet? - would I be covered, if not do I want/need this cover?

Q) How do I obtain the best home insurance cover at the best cost?

A) Once you have identified your home insurance requirements obtain several quotes from different companies and compare the cover and the cost.

Some insurance companies will offer discounts for the following:


Purchasing your buildings and contents policies together
Introductory Discount
The number of years that you have not made a claim - NCD
Crime prevention measures such as being located within a neighborhood watch area, having a burglar alarm, and having adequate locks and security.
Q) How can I take preventative security measures that will bring down my premiums?

A) A good insurance company or broker will be able to provide you with a list of measures you can take to make your property more secure, and as a result obtain a cheaper quote.

The following security measures are recommended


Make sure you have adequate locks on outside doors.
Put key operated locks on windows.
Don't make it obvious when you're out or away on holiday.
Mark your property with your postcode and make a list of your valuables, noting the serial numbers of electronic appliances.
Have an alarm fitted by an approved supplier.
Join a neighbourhood watch scheme.
Q) Having received the cheapest quote, should I accept it?

A) It depends. The reputation of the insurance company is extremely important, you want to deal with a reputable insurer that will offer a high level of customer service, especially at the point of claim. If possible, choose an insurer whose own customers/policyholders express a positive experience of the services or claims with the company..

Q) I bought my building and contents insurance via the building society when I arranged a mortgage. Am I bound to stay with them, or can I switch my insurance elsewhere?

A) You are not bound to buy your building or contents insurance from your home lender, unless of course you agreed to a special mortgage deal, which required you to buy 'their' insurance. Mortgage lenders tend to have an arrangement with an insurer who will provide at least buildings insurance to borrowers. It is convenient for the lender because having set up an arrangement; they know clearly what the cover includes. However, it may not be the best deal for you in price terms and you might choose to shop around. If you decide to use another insurer, your home lender will have to give its approval. They'll want to check through the policy details and for this 'service' they may charge you a fee of around £ 25.