Home insurance

Home insurance, also called house insurance, can help cover your home and belongings financially against fire, flooding, theft or accidental damage.

Buildings insurance and contents insurance are the two types of home insurance available. Depending on your needs, you can buy these as separate policies or together in a combined policy.

There are around 35 million home insurance policies in the UK but home insurance statistics estimate that around a quarter of UK homes (7 million) are currently uninsured.

Lots of factors affect the price of insurance, from the location to the type of roof you have. Generally, if your house is seen as high risk by insurers, then your policy is going to cost you more. Also, the amount of times you've claimed on your home insurance can affect the cost, because you're more likely to claim again. Here's what can affect the cost of home insurance:

The rebuild cost of your property

This is how much it would cost for your insurer to rebuild your home if it was destroyed. The rebuild cost can vary depending on the size of your home, so this can affect the price of your insurance.

Where you live

If you live in an area that has a high crime rate or is flooded regularly the price you pay for insurance could increase. That's because insurers are more likely to have to pay out for a claim.

Building materials and type of roof

If your home has a flat roof or thatched roof or if it's made from specialist materials, you might pay more for insurance. This is because you'd need a specialist to repair your home if it was damaged, which could cost your insurer more money.

Home security

Adding more security, like cameras or floodlighting, can help to protect your home from burglars. Some insurers might give you a discount if you install an insurance approved burglar alarm too. You should also make sure your door locks are in good working order. Your insurer might not pay if you're burgled and your locks are damaged or faulty.

Age of the property

Older buildings are usually more expensive to insure because they're more likely to have structural issues.

No claims discount

If you don't claim on your home insurance, your insurers see you as lower risk and generally reduce your insurance prices. That's why insurers offer no claims discounts (NCD) for people who haven't made a claim. Usually, the more years no claims you have, the higher the discount.

Excess

If you increase your home insurance excess then your insurance price should be cheaper. But you must be able to afford the excess as you will need to pay this if you end up claiming.

Value of contents

If you've got lots of valuable items, then your insurance price is going to be high. That's because it costs your insurer more to replace them if they're lost, stolen or damaged. Try to be accurate when you're working out the value of your contents so you're not paying too much, or too little for cover.

Policy add-ons

These are extras like accidental damage or no-claims discount protection. Add-ons are useful, but they can increase the price of your home insurance overall. Think carefully about whether you need these before you buy them.

Government initiatives

Some government initiatives can help to keep the cost of insurance down. Flood Re is an example of this. This scheme helps people who live in areas with a high flood risk access affordable home insurance.

You can choose optional extras or add-ons to your policy to get extra cover for specific scenarios. But remember that they increase the price you pay for your insurance. Before you buy, it's worth evaluating whether you're going to use the extra cover. Here are some common home insurance add-ons:

High-value items cover

This is useful if you own items that are over £1,000. You can list these on your policy as 'separate items'.

Home emergency cover

This pays to fix emergency issues or any urgent repairs in your home.

Accidental damage

If you spill red wine on your cream sofa, accidental damage can cover the cost of repairing or replacing it.

Legal protection

This can help cover some of the costs if you need to take legal action, for example personal injury claims or disputes about shoddy workmanship.

Personal possessions cover

This type of policy covers items that are less than £1,000 if they're damaged, stolen or lost when they're away from home.

Alternative accommodation

If your home is uninhabitable after a storm, fire or flooding for example, alternative accommodation cover can give you a place to stay while your home's being fixed.

We also offer other types of home insurance to fit your personal living situation:

• Tenants insurance covers your belongings if you're in rented accommodation.

• Unoccupied house insurance covers your home or holiday home if it's left unoccupied for more than 30 days.

• Second home insurance covers your second home. You might need this type of policy as your second home is likely to be left empty for a long time.

• Flat insurance gives you the same cover as regular home insurance, but it's more specific to flats.

• Renovation insurance provides cover if you're having building work or renovations done.

• Listed building insurance is specifically for listed buildings as they have specialist requirements, for example, a thatched roof.

• Subsidence insurance covers subsidence damage to your home. This is where the ground underneath your home starts to sink.

• Flood insurance is specialist cover for people who live in an area that's prone to flooding.

• Student home insurance covers your belongings if you're a student in halls or shared accommodation.

• Leasehold buildings insurance covers you for structural damage to your leasehold property.

• New build home insurance this is like a standard home insurance policy with buildings and contents insurance, but it's specifically for new build houses.

• Non-standard home insurance is for if you have a non-standard home. For example, it has a timber frame or it's prefabricated.