For most people, buying a house will be the biggest investment you ever make. Therefore its a good idea to have some kind of protection in place in case anything goes wrong. Home insurance covers you in the event of fire, storm or flood damage, burglary and many other situations that can leave you out of pocket through no fault of your own. To keep things simple though, there are just two main types of policy that homeowners can take out - buildings insurance and content insurance.
Buildings insurance covers the structure of your home such as the walls, roof, floor and ceilings. It offers protection against floods, storm damage and subsidence. It also covers the costs of any rebuilding work required due to damage or destruction by fire. Buildings insurance will also cover any permanently fitted fixtures such as a kitchen or bathroom. Some policies may also cover burst water mains but check this with the provider before taking our a policy if this is something you wish to be covered against.
As with most insurance policies, there are generally some exclusions that apply or conditions that must be adhered to. If your home is unoccupied for more than 30 days in a year, you may find that the policy is no longer valid. Check the policy terms and conditions carefully to ensure you have the right level of cover you require.
If you have a mortgaged property, the lender will often insist you have buildings cover in place to repay any costs that may arise. Tennants in rented properties do not need to worry about buildings insurance as this is the landlords responsibility.
While buildings insurance covers the house itself, contents insurance covers everything inside of it. This gives protection against theft, fire damage, flood or accidental damage and any other cause of damage to your property in the house. Some insurers will even cover you for possesions that you have on your person outside of the home such as a mobile phone or camera, so it is worth comparing whats covered between difference insurers before taking out a policy.
When taking out contents insurance, it is vital that you value your possesions correctly. Often people undervalue their items and can end up out of pocket in the event of a total loss of property in events such as fire. It is also important to correctly list your high values items such as TV's and Laptops as you may risk losing a pay out on these if your insurer is not told about them up front. Some insurers can also have a cap on the amount they will pay out for a single item, so double check your policy covers the full amount of an high value items you own.