For the majority of the population, their home is the most expensive and important thing they own. Not only does it provide a place for them to live, put also one to store most of their worldly possessions.
For this reason, you would think that home insurance is something that many of us wouldn’t think twice about taking out. However, it is estimated that a staggering 25% of households across the UK are not protected with any kind of home insurance.
To begin with, it’s important to point out that there’re two main types of house insurance; the first, contents insurance, and the second, buildings insurance.
Their names are pretty self explanatory as to what they cover, knowing which one you require however, sometimes is not.
Contents insurance could be considered the most “basic” type of cover, as it should be purchased by both homeowners and tenants.
This type of cover generally insures all of the items in your home, from the most expensive things (e.g. TVs, PCs, other miscellaneous electronics) right down to the more “day-to-day” items (e.g. clothing, kitchen & bathroom ware).
Secondly is buildings insurance, which as the name suggests covers the actual structure of the building. Those simply renting a home do not usually require such cover, as it is generally the responsibility of the landlord to ensure his/her building(s) are insured.
You may find that some insurance company’s sell contents and building insurance as a bundle when you purchase a new home.
Both home insurance policy types will have very specific definitions on what they do and do not cover, and premiums will vary considerably depending on individual circumstances.
For instance, some contents cover polices may exclude certain items, whereas some may even insure possessions lost abroad.
The premiums on buildings insurance generally depend on such factors as location, age, the stability of the land the house is on and the actual structure of the house.