A simples guide

What’s the cheapest type of home insurance?

While it’s tempting to take the cheapest deal available when it comes to home insurance, it’s essential to check the policy offers sufficient cover to protect your house and contents, should anything happen. 

What type of home insurance do I need?

There are two different types of home insurance. Buildings insurance covers the physical structure of your home, so that’s the roof, ceilings, walls, floors doors and windows, as well as any permanent fixtures and fittings. If you have a mortgage, then your lender typically insists that you have buildings insurance for the entire length of your mortgage. If you’re renting a property, then it’s usually your landlord who’s responsible for buildings insurance. 

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Contents insurance typically covers anything in your home that you can take with you should you move house, so possessions such as your TV, fridge, freezer, sofa, clothes and jewellery. Although there’s no law saying you must have contents insurance, if you own or rent a property it could cover your possessions if they’re stolen or damaged by fire or a flood, for example.

It’s important to take into account how much your house and contents are roughly worth before taking out a policy to ensure you have sufficient cover and you’re not underinsured.

Can I save money by buying buildings and contents insurance together?

While you can purchase buildings and contents insurance separately, it can often be more economical to buy them bundled together from the same provider. It might also be worth looking at our tips for over 50s and over 60s too, if appropriate. 

What should affordable home insurance cover?

  • You should take out enough buildings insurance to cover the cost of rebuilding of your home – that’s the amount it would cost you to rebuild it, in the same place, if it was destroyed by an event you’re insured for, a fire or flood, for example. Be aware that if you underestimate the rebuild value, then the amount your insurance provider pays out might not cover the full costs. If you’re not sure how much it would cost to rebuild you home, we’ll help you to work it out when you start a quote with us.

  • When you take out contents insurance, it should cover the total value of all your possessions. You’ll need to give your insurance provider an estimate of how much your contents are worth. Try to be as accurate as possible, because if you underestimate, the payout from your insurance provider might not cover all your losses. But if you overestimate, then you’ll end up taking out more insurance than you need, and possibly paying a premium that’s too high. If you need some help, read our guide on how to estimate the value of your home contents.

  • Look for contents insurance that includes a new for old policy, which means that if any of your insured possessions are lost or damaged, they’ll be replaced with a like-for-like new product.

What optional extras can I add to a home insurance policy?

The following types of cover are typically available as optional add-ons to a home insurance policy and will usually involve an extra cost if you choose to include them.

  • Accidental damage

You can add accidental damage to your buildings insurance policy, which could cover you for damage to the structure of your home, including mishaps such as drilling a hole through a pipe or accidentally putting your foot through the ceiling.

Accidental damage is also available as an add-on to contents insurance and could protect against the cost of any accidents to your possessions, such as red wine spilt on a sofa.

  • Personal possessions outside the home

Personal possessions insurance offers cover for the belongings that you usually carry with you when you’re out and about, should you lose them or they’re stolen.

  • Legal expenses

Legal expenses cover aims to cover you for the costs of being sued or having a claim made against you. For example, a plumber does what you consider to be a poor job at your home and you don’t want to pay their bill, but they still demand full payment from you.

cheapest type of house insurance policy

If you’re concerned about insurance for expensive items, such as your mobile, tablet or laptop, while you’re outside the home, it could be more economical to include these items in your home insurance (by adding personal possessions cover to your policy), rather than buying separate cover for them.

On the other hand, avoid doubling up on cover by checking whether your possessions are covered elsewhere. For example, you might find that your bank account offers cover for your mobile phone.

Where can I find affordable home insurance?

Use our comparison service and we’ll help you find a good-value deal on your home insurance that offers the right level of cover for you. Start a quote with us today to see how much you could save.

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