Home insurance

Buildings versus contents

Buildings insurance covers the structure of the property: walls, roof, floors, fitted kitchens and bathrooms. Contents insurance covers what you put inside: furniture, clothes, electronics, jewellery, food. A standard combined policy covers both. If you are a flat leaseholder the freeholder usually arranges buildings cover (and recovers it through service charge), so you need contents only.

Sum insured: rebuild cost, not market value

Buildings insurance is set against the cost to rebuild the property, not the market price. A £400,000 Victorian terrace in Romford might rebuild for £180,000. Insuring it for £400,000 wastes premium; insuring for £100,000 leaves you under-insured and exposed to "average", where the insurer reduces a partial-loss claim in proportion. We use the BCIS rebuild calculator and check it lines up with the survey valuation.

Lender requirements

Your mortgage offer will specify the minimum buildings sum insured and require certain perils to be covered (typically subsidence, accidental damage, escape of water). We check the policy schedule against the offer wording before exchange so the solicitor is not chasing a fix on completion day. The most common late-stage hold-up on completion is a buildings insurance policy that does not meet the lender wording.

Contents inventories

For most homes a single sum insured of £30,000 to £75,000 covers contents adequately. High-value single items (engagement rings, watches, art, instruments, cycles over £1,500) usually need to be specified individually on the schedule, and some need cover away from the home (for jewellery worn out, cycles ridden out). We list these properly at outset.

Optional add-ons that earn their place

Accidental damage extension, home emergency cover, legal expenses, family cycle cover and cover for valuables away from home are common add-ons. Most are cheap (a few pounds a month) but only useful for some households. We ask, recommend, and exclude the ones that are not relevant. Add-ons you do not need are the easiest place to overspend on home insurance.

Claims and excess

The voluntary excess (the amount you pay on each claim) sits on top of the compulsory excess set by the insurer. Choosing a higher voluntary excess reduces the premium; just be sure you can pay it if needed. Subsidence claims have a separate, higher excess (typically £1,000) by industry standard.