Keep your home (and contents) protected
A good household insurance policy will cover your home against burglary, fire, frozen pipes, flood and other threats. It’s split into two parts – buildings and contents – and most people buy both from the same insurer.
If you’re a homeowner, building insurance is essential. It covers the bricks and mortar and permanent fittings, such as your bath and fitted kitchens and, in some cases, the garage, greenhouse and shed.
Renters don’t need buildings insurance, but almost everyone should have contents cover.
The good news is household insurance premiums have fallen to an average £141-a-year for combined buildings and contents cover, according to research from Moneysupermarket.com
Head of home insurance Kate Devine pinned this on a drop in claims in lockdown and increased competition among insurers. She said: “Easing restrictions may increase claims and premiums, so shop around.”
Prices depend on where you live, averaging £208 in London but just £126 in Wales.
Head of home insurance at Comparethemarket.com, Chris King, says everyone should shop around online and consider accidental damage cover for mishaps such as spilling a drink on your laptop, or DIY accidents like banging a nail through a pipe.
If you have been splashing the cash on some pricey new purchases, let your household insurer know. Some set a “single item” limit that could be as low as £1,000 or £1,500, so make sure your prized possessions are covered. Keep receipts for more valuable items and take photos, as proof of ownership in case of a claim. The same applies to collectables or valuables, such as stamp collections, memorabilia, antiques, artwork, and so on.
Most policies offer “new for old” cover, but some only offer replacement value, which is less valuable and keep cover updated in line with the value of possessions. If you have £40,000 of possessions but only covered to £20,000, the insurance company claims assessor may only pay half. Defaqto.com and Moneyfacts.co. uk have star ratings services showing which home insurance policies have the best features.