Home Insurance

Buildings Insurance is often required by the lender and protects the house structure (i.e. such as walls, roofs, floors) and permanent fixtures (e.g. fitted kitchens or bathroom suites). Policies usually cover damage caused by floods, earthquakes, fires, theft or vandalism. It also includes damage caused by falling trees, motor vehicles, and burst pipes.

Insurance can also be extended to include your household personal possessions and furnishings, i.e. Contents Insurance, which additionally protects your belongings, e.g. furniture, household appliances and electronics, clothes and other valuables at home.

Home Insurance falls into the general insurance policies group.

This type of cover can be used to cover private property that you own and live in.

In most cases, people who own a mortgaged property are required to have Buildings Insurance.

People who do not own their property but only rent the house or apartment in which they live can also consider to take out Contents Insurance.

Most insurance companies offer the following types of policies:

Buildings Insurance

Events usually covered by this policy as standard:
Fire, smoke, explosion, lightning or earthquake;
Riots, riots, strikes or political disturbances;
Malicious damage or vandalism;
Theft or attempted theft;
Storm or flood;
Subsidence;
Impact or collision,
Water or oil leak.

Additionally, there might be extra features covered by buildings insurance:

Liability of owners (usually up to £ 2,000,000),
Alternative accommodation (including pets).

The most common exclusions:

Policy excess – the amount that must be covered by the insured in the event of valid claim;
Excess in the event of water or oil leakage and subsidence is usually higher than the standard excess;
Loss or damage in a situation where the property has been unoccupied for a longer period (e.g. 60 days or more);
Loss or damage due to damp or decay;
Storm or flood damage to fences, hedges, gates.

Contents Insurance

Events usually covered by this policy as standard:

Fire, smoke, explosion, lightning or earthquake;
Riots, riots, strikes or political disturbances;
Malicious damage or vandalism;
Theft or attempted theft;
Storm or flood;
Subsidence;
Impact or collision,
Water or oil leak.

Additionally, there might be extra features covered by contents insurance:

Liability of tenants (usually up to £ 2,000,000);
Alternative accommodation (including pets);
Garden plants and shrubs;
Electronic downloaded data;
Theft from farm buildings or an outbuilding (e.g. garage) located within the property;
Office equipment if you work from home;
Door locks replacement;

The most common exclusions:

Policy excess – the amount that must be covered by the insured in the event of valid claim;

Excess in the event of water or oil leakage and subsidence is usually higher than the standard excess;

If the property is left without residents overnight, doors and windows should be properly closed (see policy guidelines),
Limits for a single item (e.g. up to £ 5000) and for jewellery (e.g. up to £ 2000) – if a particular item exceeds the limit stated in the policy, it can also be specified so that it will be fully insured (this is usually related to an additional premium).

Combined Buildings and Contents Insurance

It contains elements of the two policies above.

Both Buildings & Contents insurance in the UK can be extended with an accidental damage benefit, which extends the scope of cover to unexpected accidents, such as spilling coffee on the sofa.

Personal Possession Cover – personal effects

An additional option, thanks to which customers have extra protection against accidental damage or loss of their personal belongings used at home or outside the home. Most frequently included subjects:

Jewellery;
Clothing;
Mobile phone & gadgets;
Keys;
Watch, glasses, photographic equipment;
Sports accessories;
Cash and credit cards.

Family Legal Expenses – legal protection

An additional option which could fund legal costs if you are faced with a legal dispute related to your home, employment or personal injury as well as provide access to legal advice to guide you through legal situations such as:

Employment disputes (e.g. unfair dismissal or discrimination at work);
Contractual disputes (e.g. faulty goods or services);
Injury from an accident that was not your fault;
Medical Negligence.

This material is for information purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance or any other financial product, you must obtain individual advice regarding your requirements and general policy conditions.

For more information about buildings and contents insurance visit MoneyHelper.

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If you own a rented property, you should enquire about Landlords Insurance.