Household insurance
Making sure your house and its contents are covered.
If you own your own home, there are two basic types of household insurance you are likely to need; contents insurance and buildings insurance. If you rent your house or flat you'll only need to consider contents insurance, and if you buy a leasehold flat your buildings insurance is usually something you pay for as part of your maintenance or service charge.
Contents insurance
It's estimated by the Association of British Insurers that 20% of people don't have enough contents insurance. Skimping on insurance could be a false economy if you're burgled or your home is flooded (whether it's from floodwater or something like a leaking washing machine).
If you're trying to work out what your contents insurance would cover and what would be covered by buildings insurance, an easy way to think of it is that contents insurance pays out for anything that you could take with you if you moved. This includes furniture, clothes, electrical goods, jewellery and so on. It also includes carpets, even if they are fitted, although it doesn't include most other types of flooring.
Do I have to get my contents insured?
Some people don't bother with contents insurance at all, but before you decide not to buy a policy, add up how much it would cost to replace everything you own.
You'll need to consider contents insurance even if you are living in a rented house or flat, or sharing with friends. Many people, particularly those living in rented property, don't appreciate the risk of not having their contents insured.
If you're a student, your possessions may be covered by your parents' contents policy if you live with them when you're not at university, which means you wouldn't have to buy your own policy. Check how much cover you'd have (and make sure that things like your mobile phone, laptop and MP3 player would be covered).
How do I choose a policy?
Policies vary between insurers. All will cover contents inside the home and some may also give you cover for contents that you take out of your house, such as a camera or jewellery. You may have to pay extra for this cover, although some policies include it as standard.
Contents insurance normally covers damage from a very wide range of risks, such as theft, fire, flooding or escape of water, storm damage etc. Most policies will pay out if you accidentally damage mirrors and glass in furniture although you can pay extra to have accidental damage cover to all your contents. This means you would be able to claim if, for example, you knocked over a tin of paint and damaged your carpet. If you have lots of downloads, check whether those will be insured. Not all policies cover them.
Many household policies also offer cover for any legal expenses to sue someone, or if you are sued.
Buildings insurance
Buildings insurance covers the structure of the house including fixtures and fittings together with garages and outbuildings. This means things like baths, fitted kitchens, and boilers, as well as the fabric of the building (the walls, windows and roof etc).
Some policies also cover garden fences and walls, gates, paths, drives and even swimming pools. In general, anything that would be left behind if you moved is included in buildings insurance.
Do I have to get buildings insurance?
If you're renting, buildings insurance is paid by the landlord, not you.
The cost of buildings insurance policies varies widely and you might be tempted to opt for the cheapest policy or not to bother with the insurance at all. If you don't have buildings insurance and you own your own home, you could be left with a bill for tens - or even hundreds - of thousands of pounds if it was flooded or damaged by fire.
How do I choose a policy?
It's not always the case that the more you spend the better the policy, but some cheap policies may not give you the cover you need. Buildings insurance should cover a wide range of incidents, from fire, to oil leaking from a central heating system, to burst pipes. In some cases, you may have a large excess of thousands of pounds imposed on you (for example, if you have made an expensive claim for flooding or subsidence in the past).
Not all policies will pay out if you leave your home unoccupied for more than 30 days - other companies will insure your possessions as long as you tell them in advance if you're going to be away for longer than 30 days. If you're ever unsure, always call your insurer to check what cover you have.
Find out how much household insurance you'll need.
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