Buildings, contents or both? We'll help you decide and find the right home insurance policy.

What matters to you?

Home insurance comes in two types: buildings insurance, for the structure itself, and contents insurance to protect the things in it.

If you're taking out a mortgage, buildings insurance is often essential.

More about buildings insurance. More about contents insurance.

What are your options?

Extra features

As well as cover against risks such as fire, theft and flood, some policies incorporate a number of special features as standard or as optional extras.

These include:

• personal possessions/all risks for items you take out of the home e.g. sports equipment
• accidental damage
• personal money and credit cards
• legal expenses

The sum insured

Unless your insurer is offering an unlimited or maximum amount of cover, you will need to work out the sum insured - the total value of your property and possessions. Be accurate - it forms the basis of your premiums.

More about valuing your contents.

Your contents cover

There are two types of policy to choose from:
• New for old: covers the full cost of replacing or repairing items.
• Wear and tear/indemnity: the cheaper policy, but with a deduction for wear, tear and depreciation.

For more details, see Home insurance: your choices

Avoid the pitfalls

• Be clear about what your policy doesn't cover.
• Be honest about the state of your property - if you're not, the insurer may not pay out.
• Set a realistic excess. Don't go for the highest excess value just to reduce monthly payments.
• Check whether your premium increases if you pay in monthly instalments.

Cost-cutting tips

• Compare quotes - don't go with the first option.
• Join a Neighbourhood Watch scheme - a free way to cut your home insurance premium.
• Buy buildings and contents insurance from the same company.
• Fit an approved burglar alarm and secure locks.
• Increase the excess within affordable limits.

Next steps

Once you know what you're looking for, it's time to compare home insurance policies.