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A Comprehensive Guide To Home Insurance In The UK

Home insurance is designed to cover both liability and property insurance, which makes it a multi-line policy. It plays a major role in helping homeowners cope with any losses suffered due to damage or destruction of the property and its contents. The cost of replacing the property or personal belongings determine the premiums charged by the insurance company.

What Are Some Of The Key Benefits Of Taking Out Buildings Insurance Or Contents Insurance?

It provides coverage for the physical structure of the home and personal belongings in the event of damage or theft. In addition, the policy provides much-needed liability coverage. This ensures that when a guest is harmed or killed, or their possessions are destroyed or damaged while at the property, your policy will provide compensation. A good example is when a visitor suffers personal injuries due to a fire or a falling tree at your house.

This type of insurance is also useful for satisfying the requirements of a mortgage lender. On the other hand, the policy can also provide coverage for any expenses associated with a hazardous event. The expenses can include renting an apartment or staying at the hotel while your home is undergoing repairs.

Understanding Your Policy

The first rule of understanding the contents insurance is that insurers offer policies with varying terms and conditions. For this reason, it is vital to identify covered items. Many homeowners assume that certain hazards, such as flood damage are covered only to discover additional coverage is needed. Making assumptions about coverage can have significant financial repercussions.

  • Some of the perils covered by homeowner’s insurance include:
  • Damage caused by falling trees or other objects
  • Civil unrest, explosions, fire, hail, strong winds, lightning or smoke
  • The weight of snow, freezing rain, sleet or ice
  • Vandalism or theft
  • Water damage due to burst pipes, air-conditioning malfunction or sprinkler system


Insurance companies often exclude from basic coverage hazards that occur frequently in some areas. These perils include flooding, landslides, pollution damage, acts of war and damage by pets, pests or rodents,

Most policies make a clear distinction between different types of water damage, such as gradual water damaged linked to flooding and sudden water damage caused by burst pipes. The former is typically not covered while the latter is covered.

Types Of Home Insurance Policies

The type of policy you buy determines coverage and compensation terms. Condominium insurance is designed to provide coverage for owner-occupants of condos. This variant typically covers damage to floors, walls, personal property and the ceiling.

Modified coverage is aimed at providing cover for older properties whose market value is lower than the cost to rebuild. This option typically covers the same hazards as the standard home or contents insurance.

Dwelling fire form only covers damage to the building when it is caused by specific hazards. It excludes medical coverage, liability and personal property. It is well suited to holiday homes. Mortgage lenders often purchase this type of policy on behalf of borrowers if the homeowner’s policy lapses. Townhouse owner-occupants can take out an individual home insurance policy or through an association (group policy).

To learn more about different types of homeowners policies, including buildings insurance, contact us today.


Insurers may require an out-of-pocket payment on claims (known as a deductible) prior to policy reimbursements. This is aimed at reducing the number of trivial claims filed by policyholders. The amounts associated with deductibles are generally low, thus allowing most homeowners to afford to pay. The applicable amount can vary depending on a variety of factors, including the savings desired on premiums.

A policy with a £1,000 deductible can have a premium that is approximately 25 percent lower when compared to a policy with a £500 deductible. This allows you to pay less every month, but the insurer expects you to pay the first £1,000 on a home, contents or buildings insurance claim. The coverage becomes active thereafter.

Catastrophe deductibles can be included for flood and earthquake insurance. They are expressed as a percentage of the property’s value as opposed to the pound sterling amount.

Optional Insurance And Endorsements

To maximise coverage, you can opt for additional levels of insurance or other more expensive policies, which are entirely different from the homeowner’s insurance. Optional policies are vital for properties located in high-risk areas, such as earthquake and flood zones. Premiums for these policies vary depending on the frequency of disasters in each area.

Insurers may sell earthquake insurance separately or as an endorsement to a home policy for policyholders living in a zone known for seismic activity. Homes built using wooden frames are cheaper to insure than brick and mortar dwellings, which are fragile during seismic activity.

Compare home insurance products using our comparison tables above.