For most people, home insurance consists of buildings insurance - covering the repair or rebuilding of your property and its fixtures in the event of damage or disaster - and contents insurance, which covers all the items you would remove from the property when moving home. When seeking a home insurance quotation, it is often cheapest, and is certainly easiest, to obtain a combined policy for both of these.

Buildings insurance is the more vital of the two, as it covers the roof over your head. It is a requirement of mortgage providers as they need to protect the security of their loan.

Buildings insurance typically covers the structure of your home, permanent fixtures like fitted kitchens, baths and basins, and often such things as garden sheds, greenhouses, garages, driveways, paths, gates, boundary walls, fences and swimming pools.

Most contents insurance policies cover you for fire, flood or water damage, vandalism and theft of household possessions. There is usually a stated maximum amount for the value of the contents of the home, although an increasing number of policies have an unlimited amount. This gives peace of mind that you are not underinsured and saves having to draw up an inventory to ascertain values, but the policy may be more costly and will probably require that more expensive items are itemised.

When compiling the list of contents, it is important to be as accurate a possible, because if you are underinsured any claim pay out will be for a correspondingly reduced amount too. When assessing each room, remember to include the garage, cellar, loft, attic and garden shed if applicable. Keep anything that could help to prove ownership of items in the event of a claim, such as receipts for purchased goods. It is important to disclose anything that could affect the policy, for example if you work from home or have a lodger.

 You can add numerous features to the policy, although for the best price home insurance, opt for the most basic one. Extras include accidental damage, legal protection, freezer contents, garden contents, sports equipment and replacement locks if you lose your house keys.

To obtain cheaper home insurance opt for a wear-and-tear policy, where compensation for lost items is paid but with an appropriate reduction for depreciation. More expensive new-for-old policies, also known as ‘replacement as new’ cover, meet the full cost of replacing items. A limit may be set on the value of expensive items like computer equipment, works of art, ornaments and jewellery and a valuation may be required in the event of a claim.  

There are a number of specialised policies, such as landlord home insurance or buy to let home insurance, for properties that will have tenants, and student possession insurance, geared to the typical student’s unsecured possessions, considered more vulnerable to theft than normal. Self-builders and owners of listed properties or holiday homes are likely to require specialist policies to cover their specific needs.

By Ben West