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Is home insurance a legal requirement?

Do you really need to have home insurance? Is it mandatory or is it something you can live without? This is our guide to what you need to know.

Do you really need to have home insurance? Is it mandatory or is it something you can live without? This is our guide to what you need to know.

Chris King
From the Home team
minute read
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Posted 15 JANUARY 2020

Is home insurance mandatory?

Home insurance isn’t a legal requirement, but it’s always a good idea to protect your home with both buildings insurance and contents insurance.

After all, there’s a good chance that at some point you’ll need it – according to the Association of British Insurers, insurance providers pay out some £8.1 million a day to reimburse homeowners for damage and loss.

Do I need home insurance if I have a mortgage?

If you have a mortgage, your mortgage company has likely made it a condition of the loan that you have buildings insurance in place. This covers the structure of the building, as well as any permanent fixtures.

But it’s your choice whether to get contents insurance. This offers cover for everything in your home that you can take with you if you were to move house – from your furniture to your TV and fridge. It usually includes carpets too.

It can be tempting not to bother getting protection, but ask yourself: could you really afford to replace all your belongings if you had to?

I own my property outright – do I still need home insurance?

If you own your home outright, then there’s no legal obligation for you to take out either buildings or contents insurance. That said, your home and in its contents are likely to be your family’s biggest asset.

So, when it comes to having peace of mind, you’re better off shelling out for an insurance premium than losing everything to fire, flood or theft.

I own and live in a leasehold flat – do I have to buy home insurance?

Your buildings insurance could form part of your service charge, rather than you having to pay for it. It depends on the conditions in your lease. It could be that you insure parts of the flat that are your legal responsibility and your leaseholder covers the communal parts of the building. Whatever the arrangement, you should find it’s covered in your leaseholder’s agreement.

Contents insurance isn’t mandatory, but again you should seriously consider it.

I’m a landlord – do I need to take out home insurance?

If you’re a landlord with a buy-to-let mortgage, you’ll find that your mortgage provider will probably insist you take out buildings insurance. Consider a landlord insqurance policy as a normal home insurance policy is unlikely to offer you the right cover.

If you own the building, you’re not legally obliged to have buildings insurance, but not doing so will mean you’re liable for the full cost of any building repairs.

And if you’re renting a furnished property, it may be a good idea to get contents cover for expensive items such as beds, sofas and fridges.

Many insurance providers offer landlord insurance, which can include buildings and contents insurance. Use our landlord insurance comparison service to find the right deal for you.

Do I need home insurance if I’m renting?

If you’re privately renting, it’s the landlord’s responsibility to insure the building. You may want to take out your own contents insurance, but again this isn’t compulsory.

How can I get a home insurance quote?

Whatever your situation, it makes sense to compare quotes for buildings and contents insurance. That’s where we come in. Start a quote with us today and we’ll help you find suitable home insurance at the right price for you.

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