We explain why you need home insurance and what makes a good policy.
The best home insurance policies provide you with financial protection in case of theft or damage to your property or possessions.
Home insurance can be divided into two aspects, buildings insurance and contents insurance.
A common analogy used to differentiate between the two is that if you turned a house upside-down, everything that fell out would need to be covered by contents insurance, whereas all the permanent fixtures that remained would be covered by building insurance.
Building insurance is an essential for homeowners because, as a means of securing their investment, the majority of mortgage lenders require a borrower to have sufficient buildings insurance in place to cover the rebuild (as opposed to market) value of their home.
In addition to the property itself, outbuildings such as garages as well as permanent fixtures such as bathroom suites and fitted kitchens are usually covered under buildings insurance - although not their contents.
Instead, many homeowners choose to take out a combined buildings and contents insurance policy to cover both their property and belongings in one.
This is a popular choice, and providing you take your time to compare the level of covered by different home insurance companies, a combined home and contents insurance policy can be a convenient and affordable way to protect your home.
Home contents insurance is required by both homeowners and renters alike as a means of protecting furniture, white goods, electrical appliances, clothes and other items kept in the home.
This can be purchased in combination with buildings cover, or as a standalone policy that provides contents insurance for tenants or students contents insurance.
The basic level of contents cover offered is called indemnity insurance, this is where an insured item is replaced with an item of the same age.
However, most people choose a higher level of insurance, known as new for old cover, which although slightly more costly, will pay for an insured item to be replaced with a brand new version if a claim is made.
Most home insurance companies offer optional add-ons to home insurance policies which are ideal if a more comprehensive level of cover is needed. These add-ons include accidental damage cover, legal cover, emergency assistance and garden or sports equipment cover to name a few.
When you compare home insurance quotes it is important to check that the level of cover you choose for your home insurance is sufficient to cover the rebuild of your home and the replacement of all of your possessions.
Additionally, when you carry out your home insurance comparison is also worth checking the home insurance quotes to see whether there are any limits placed on the amount that will be paid out for each item you own and also whether possessions are covered when they are taken outside the home.
Many insurance companies offer joint policy discounts if buildings and contents insurance are taken together.
However, while cheap home insurance is always attractive, it is best to choose a home insurance policy for the level of cover it provides rather than the amount it costs.
With a the best home insurance policy in place whether you own your own home, rent a property or need second home insurance you can be confident that if the unforeseen should happen, your possessions and property will be covered.
