Mastering the Home Insurance Checklist

Buying home insurance is important. It protects your home and belongings from things you don’t expect. Whether you own or rent your place, the right policy gives you peace of mind and keeps you financially safe. But, finding the best policy can be hard with so many choices out there. This ultimate home insurance checklist will help you know what to consider before picking a policy.

What Is Home Insurance and Why Do You Need It?

Home insurance helps you save money if your home is damaged, stolen, or affected by a natural disaster. There are two main types of home insurance:

• Buildings Insurance: This insurance protects the structure of your property. It covers the walls, roof, floors, and fixed items like kitchens and bathrooms.
• Contents Insurance: This insurance covers your belongings. It protects items such as laptops, jewellery, furniture, and other personal possessions from theft, fire, and damage.
• Combined Policy: A combined policy includes both buildings and contents insurance. This way, you receive complete coverage.

If you have a mortgage, you usually need buildings insurance. This type of insurance protects your investment. Renters typically require contents insurance. This is because the landlord is in charge of insuring the building.

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What Are the Key Factors to Consider When Buying Home Insurance?

What Type of Property Do You Have?

The kind of property you have will determine how much coverage you need. Here are some key things to consider:

• Thatched roofs or different materials need special insurers. This is because they can be risky.
• Homes made of brick and tile are usually easier and cheaper to insure.
• Listed buildings may need a special buildings insurance policy because they have unique repair needs.
• Leasehold properties might have special insurance needs based on the lease terms.
• Flats often require a separate block insurance policy for shared spaces and common areas.
• Holiday homes and second homes usually need special insurance because they might not be occupied all the time.
• New-build properties can have lower insurance rates due to modern safety rules. However, they might need special warranty coverage.

What Levels of Cover Do You Need?

Home insurance policies provide different levels of cover.

• Sum Insured Cover: You choose how much money you need to rebuild your home and the worth of your belongings.
• Unlimited Cover: Some insurance companies give unlimited money for rebuilding, so you don’t need to estimate the cost.
• New for Old Cover: This gives you new items to replace those that were damaged or stolen.
• Indemnity Cover: This pays you the current value of an item, considering any wear and tear.
• Alternative Accommodation Cover: This helps pay for temporary housing if your home is not safe to live in because of an insurance-related event.
• Home Emergency Cover: This covers urgent fixes for issues like burst pipes, broken boilers, or electrical failures.
• Legal Expenses Cover: This helps with costs for property disputes, personal injuries, or problems with landlords.

Does Your Policy Include Accidental Damage Cover?

Accidental damage cover protects you from unexpected issues that occur by accident. This includes things like:

• A laptop gets coffee spilled on it.
• A kid breaks a window.
• Damage happens from DIY projects.
• A bathroom sink cracks while putting in fixtures.
• A person drops and damages a costly television.
• A valuable antique or artwork gets knocked down.

Not every home insurance policy includes this coverage. It’s important to read your policy documents closely.

What Exclusions and Excess Should You Check?

Every insurance policy has things that are not covered. These items are not protected by the policy. Here are some usual exclusions:

• Regular use over time.
• Not taking care of things.
• Damage caused by pests or rodents.
• Not maintaining properly.
• Events such as war or terrorism.
• Using the property for business (unless listed).
• If the house is vacant for over 30–60 days (unless special coverage is purchased).
• Some valuable things like jewellery or art, unless reported separately.

The excess is the money you pay before the insurer pays for a claim. If you choose a higher excess, it can lower your renewal costs. However, this also means you will have to pay more of your own money when you make a claim.

How Do Insurance Companies Calculate Home Insurance Costs?

What Impacts Your Premium?

Many things can change the price of home insurance cover:

• Location: If you live in areas with high crime or flood risks, your insurance will be more expensive.
• Type of property: Older homes or houses with thatched roofs might have higher rates.
• Security measures: Having alarms, strong locks, and cameras can help reduce your costs.
• Claims history: If you have made many claims in the past, insurers may charge you more.
• Proximity to a water source: Homes near rivers or the ocean are at a higher risk of flooding, increasing costs.
• Value of your possessions: A higher amount insured for your belongings makes your policy more costly.
• Multi-policy discounts: Some insurers will offer lower rates if you bundle your home and car insurance.

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How to Compare Home Insurance Policies

Why Should You Compare Home Insurance Quotes?

Insurance companies provide many levels of cover and different prices. It is a good idea to compare quotes before you make a purchase. You can use Free Price Compare to get quotes from several providers. This way, you can find the best deal available.

What Should You Look for in Policy Documents?

Before you get a policy, look at the policy documents for:

• Coverage limits: Make sure the amounts for buildings insurance and contents insurance are enough.
• Excess amounts: Check both the voluntary and compulsory excess.
• Additional benefits: See if the policy includes coverage for vandalism, subsidence, or home emergencies.
• Optional extras: Look for options like legal cover, accidental damage, or landlord insurance.
• Policy duration and renewal terms: Understand when and how the policy will be renewed.
• Claims process and customer reviews: Find out how fast the insurer handles claims.

How to Ensure You Have the Right Home Insurance Cover

What Should You Do Before Buying?

1. Check the worth of your belongings. If you think they are less valuable, you may not have enough insurance.
2. Learn about Financial Conduct Authority (FCA) rules. Make sure the insurer is regulated. This can give you extra safety.
3. Consider additional coverage. If you have valuable items like jewellery or laptops, see if you need personal possessions cover.
4. Read your policy documents carefully. Understand them to avoid surprises when you make a claim.
5. Know what home emergency cover is. It can help you quickly with problems like burst pipes, broken boilers, or electrical issues.
6. Look into legal cover options. Some policies can help with legal problems related to property or rental agreements.
7. Check your policy often. Your insurance needs can change, so look at your policy every year.

Using this checklist will help you feel sure about picking a home insurance policy that fits your needs. It’s important, as it will keep your home and your belongings safe.

Correct as of 27 February 2025

FAQs About Home Insurance