A simples guide

What’s the Cheapest Type of Home Insurance?

Home insurance is one of those things everyone wants for protection, but hopefully no one ever has to use. With a bit of luck, you’ll never need to make a claim. But at comparethemarket.com, we think it’s always better to be safe rather than sorry when it comes to something as important as your home. 

Share

So, what’s the cheapest type of home insurance?

Firstly it’s worth us explain the different types of home insurance. There are two main types and it’s easy to explain these. If you were to tip your house upside down with the roof off and shake it about, everything that stays in place (such as the building structure, fixtures and fittings) is covered by a buildings insurance policy and everything that falls out (such as clothes, electricals and jewellery) is covered by contents insurance. These are the two main types, but it’s worth knowing that when talking about home insurance, we’re typically talking about building and contents combined – but you can also purchase them separately.

Now you know the difference between the two types of home insurance, let’s talk costs. When it comes to cost, we know it's tempting to grab the cheapest home insurance deal you come across. But remember you need a policy that can cover everything you need, the cheapest option may not offer you enough cover. So, it’s important to take into account how much your house and contents are roughly worth before taking out a policy, and make sure you have enough cover.

house and documents
new house

What’s included in a home policy?

As a guide, all standard home insurance policies that combine buildings and contents should include the following:

  • Rebuild Cost: If the very worst happened and you needed to knock down your house and rebuild it, the rebuild cost would cover this expense. It’s important to make sure that the rebuild cost on your policy covers the cost of your entire home, otherwise your insurer might not pay the full claim amount.
  • Index-linked sum insured: If the rebuild cost changes because the cost of things like materials increase through the year, this is put in place to make sure you won’t be left underinsured if the price increases. This can also be linked to your contents, especially if you have high risk items where the amount insured increases in line with the Retail Price Index (RPI).
  • Alternative accommodation: If you ever needed to leave your home while it’s being repaired following major damage from a flood,  fire or something else that covered by your home insurance policy, this will cover the cost of a hotel or renting while your home is repaired.
  • Building owner or personal liability cover: If there’s an accident or someone is injured as a result of something to do with your home, this cover makes sure that the costs would be covered if you were to be sued as a result.

Other things to consider:

So the above will typically feature in a basic type of combined home insurance. But you might want to think about adding the following features:

This extra contents cover will protect against the cost of any accidents that may damage your home or contents. Spilled wine on the sofa? Covered. Broken vase belonging to granny? Covered. Just make sure you have enough cover to protect all your belongings.

  • Loss or theft of keys

Nothing is more inconvenient than losing your keys. Apart from having them stolen. If you lose your keys or have them stolen your insurer will pay to replace all the locks in your home straight away if you have this extra cover.

  • Legal expenses

This type of cover will make sure any legal fees and expenses caused by problems including injury claims or employment disputes are taken care of. Much like accidental damage, it will cost more to be added to your policy and it’s up to you to decide if it’s right for you.

 

cash and calculator

Where can I find cheap home insurance?

Right here at comparethemarket.com. Simply answer a few simple questions on our home insurance comparison service and we’ll search hundreds of insurers for their home insurance deals, and help you find the deal that’s right for you.

Compare home insurance

Get a quote in seconds and start saving

Get a quote