What does home insurance cover?

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Your home is your most valuable possession, and also usually the most expensive. With the average UK property now valued at £282,000, many property owners will be keen to cover their home against potentially ruinous damage costs. By taking out a home insurance policy you can cover your physical property, personal items, fixtures and fittings, garden structures, pipes and more. The key is all in checking the policy details…

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Home insurance what does it cover?

Home insurance can essentially be broken down into two types of coverage. Each insuring two different things.

• Building insurance
• Contents insurance

Whilst home insurance is generally used to refer to an insurance policy that covers the value of both your home and its contents – these two things are actually not the same. It is common for insurers to offer a ‘home insurance’ policy as a bundle of building and contents insurance in one easy-to-manage policy. Despite this however, the building and contents insurance which make up most home insurance policies are not the same thing and are essentially two different types of insurance.

Building insurance

Building insurance covers the actual structure of your property and the materials used to construct it. This means that your physical property, fixtures and fittings, walls, roofs, kitchen and bathroom appliances will all be covered unless explicitly stipulated otherwise. Outdoors, your building insurance policy will be able to cover you for any garages and sheds on your property. It can also cover you for drains and pipes which are legally regarded as your responsibility.

These will be covered by the following insurable events.

• Natural disaster
• Flood damage
• Fire
• Vandalism or malicious damages
• Arson
• Subsidence
• Third-party damages
• Falling objects

Contents insurance

Contents insurance will cover you for your home’s personal contents against the same risks mentioned above. Insurable contents are items typically found in the home such as furniture or permanent items at the property. Items typically covered under a contents insurance policy can include the following.

• Sofas
• TVs
• Games consoles
• Electronics
• Beds
• Clocks
• Wardrobes
• Cabinets
• Jewellery

Whilst these are common items insured under UK home insurance policies, you can cover virtually any valuable possessions in your home with certain exclusions. You will typically not be able to cover pets, certain vehicles, weapons, artwork exceeding a certain value and gradual wear and tear of items under a contents policy. These will generally require their own individual insurance policies.

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Remember – most home insurance policies will become invalidated if your property is unoccupied for more than 30 days.

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What are home insurance add-ons?

Home insurance add-ons are additional coverage options which are not usually included as standard in a building or contents insurance policy. These extras can include the following.

• Bicycle cover – A bicycle is a popular way of getting around town for the eco-conscious and those who just prefer not to drive. Since most bicycles will be kept in a shed or hallway when not in use, many providers offer the ability to cover your bicycle as an add-on under your home insurance policy.
• Home emergency – Home emergency cover is designed to protect you against the unexpected such as broken heating systems, burst pipes and blockages. Emergency call-outs are typically more expensive than standard repairs, so home emergency cover can be worth it if your home is at risk.
• Alternative accommodation – This can be covered under additional home emergency cover. If your home is damaged or rendered unlivable from an insurable event.
• Legal cover – Property disputes with neighbours and other relevant third parties are a possibility for many property owners, and having legal coverage can protect you against the associated costs of hiring professionals to resolve potentially costly property disputes.

Which home insurance coverage do I need?

The type of coverage you decide to take out will depend on your needs and budget. Generally speaking, homeowners benefit the most from having combined building and contents coverage but even this can differ between policyholders. Landlords would be responsible for organising building insurance whilst renters may be required to take out contents insurance for their own belongings whilst occupying the property, this is sometimes called tenant’s insurance.

Many UK homeowners opt for some form of home insurance due to costly repair and rebuild charges, which often run in excess of hundreds of thousands of pounds.

Ultimately it is recommended that you have some form of home insurance policy in place to protect your property against potentially expensive and costly repairs. The average UK mortgage takes around 25 years for a borrower to pay off, this means that unfortunately few home owners have the ability to pay for rebuilds and repairs out of their own pockets.

What is not covered by home insurance?

Not every kind of damage or incident will be covered under your home insurance policy, regardless of whether you have building or contents cover. The most typical exclusion it wear and tear. This means that as your house ages, simple wear and tear caused by daily use or age will not be covered for replacement by your insurance.

Here is a more thorough breakdown of the typical exclusions to a home insurance policy.

• Deliberate damage caused by occupant
• Damage from pets
• Wear and tear
• Infestations
• Boiler insurance

You should also check a potential insurance policy’s full details to confirm what will be excluded from your coverage.

Will home insurance cover my boiler?

Standard home insurance usually covers damage TO your boiler caused by insured events – like a fire, flood, or falling object. So if your boiler is wrecked by a house fire, buildings insurance typically pays for a replacement.

What it doesn’t cover is boiler breakdown from normal wear and tear, age, or mechanical failure. For that, you need separate boiler insurance or a home emergency add-on to your policy.

Boiler cover typically includes:

• Annual service check
• Emergency call-outs for breakdowns
• Parts and labour for repairs
• Full replacement if the boiler is beyond repair

UK boiler cover usually costs £10 to £30 a month depending on your boiler type, age, and the level of cover. Annual service is sometimes included, sometimes an extra. Check whether parts and labour are both covered – some policies only cover one.

How much is home insurance?

The more comprehensive your home insurance policy, the more it will generally cost. Prices for a home insurance policy can range anywhere from tens of pounds to a couple of hundred pounds per year. It will really depend on the following factors.

• The value of your property
• The value of your contents
• The likelihood of an insurable event in your area
• The number of bedrooms in your home – more rooms generally mean higher insurance costs

The best way to ensure that you find the cheapest home insurance for your property is to compare multiple home insurance policies from different home insurance providers. This will give you the best chance of finding the cheapest home insurance for you.

What are the different types of home insurance?

There are three main types of home insurance policy, and the right one depends on whether you own or rent your property.

Buildings insurance covers the physical structure of your home – walls, roof, floors, fitted kitchens, bathrooms, and permanent fixtures. It also usually covers garages, sheds, fences, and underground pipes within your property boundary. If you have a mortgage, your lender will almost certainly require you to have buildings insurance.

Contents insurance covers your personal belongings – furniture, electronics, clothing, jewellery, and anything else you’d take with you if you moved. If someone breaks in and steals your television, contents insurance pays for a replacement.

Combined buildings and contents insurance bundles both into a single policy, which is usually cheaper than buying them separately. This is the most common choice for homeowners. Tenants typically only need contents insurance, since the landlord is responsible for insuring the building.

How does home insurance work?

When you take out a home insurance policy, you agree to pay a premium (monthly or annually) in exchange for financial protection against specific risks. If something goes wrong – a burst pipe floods your kitchen, a thief breaks in, or a storm damages your roof – you contact your insurer to make a claim.

Your insurer will assess the claim and, if it falls within your policy terms, pay out to cover the repair or replacement costs. You’ll need to pay an excess first – that’s a fixed amount you contribute towards each claim, typically between £100 and £500.

A few things worth knowing:

• You choose your level of cover when you take out the policy. A higher level of cover means a higher premium.
• Your excess affects your premium. Agreeing to a higher excess usually brings the cost of your policy down.
• Claims history matters. If you’ve made claims in the past, insurers may charge more or exclude certain risks.
• You need to be honest. If you understate the value of your contents or don’t disclose relevant information, your insurer may not pay out when you need them to.

You might also need

Depending on your circumstances, you may want to consider additional cover alongside your home insurance policy:

• Contents insurance – if you only have buildings cover, a separate contents policy protects your personal belongings against theft, fire and accidental damage.
• Home emergency cover – covers the cost of emergency call-outs for boiler breakdowns, burst pipes, electrical failures and lock replacements.

Ready to find the right home insurance for your property? Compare home insurance quotes on Quotezone from over 40 UK providers in minutes.

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This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes