What is home insurance?

Home Insurance

Home insurance (or house insurance) is a type of insurance designed to financially protect your home and belongings. For example, if your home is damaged or destroyed in a fire, having the right insurance could mean the insurance provider will pay to replace your belongings and repair or rebuild your home.  Home insurance consists of buildings insurance and contents insurance, which can be bought separately or together from the same provider.

What does home insurance cover?

There are two types of cover available, buildings insurance and contents insurance.

Buildings insurance – covers the structure of the property and the fixed fittings inside your home. It covers the cost of damage to your home from things like fire, flood, storms, falling trees or vandalism. Also, it may cover you for subsidence, water damage and burst pipe.

Contents insurance  – this covers the possessions inside your home, like your furniture, home appliances and clothes (carpets are usually included too). It can also cover high-value items separately, including jewellery, computer equipment and bicycles. There are some exceptions to this rule: for example, some fixed fittings may come under buildings insurance, so always check your policy to see what’s included in the definition of ‘contents’.

Contents insurance covers possessions in your home that are stolen or damaged due to fire, floods and vandalism, etc. It’s a good idea to check with your policy provider to clarify what is and isn’t included if you’re unsure. For example, if you have a garden, check whether items that aren’t locked away in a shed - like a lawnmower - are covered.

Combined cover – you can get both buildings and contents insurance under one policy from the same provider. This can make it more convenient if you need to make a claim. Combined insurance can often work out cheaper than taking out separate policies, although you should always compare quotes to make sure it’s the right option for you.