Home insurance isn’t just paperwork – it’s protection for your most valuable asset. With the right coverage, you can rest easy knowing your property and belongings are secure, even when life takes unexpected turns. It’s about more than just insurance – it’s about peace of mind.
Many homeowners are looking for ways to get the most value from their insurance while ensuring they have the right protection in place. With the right information, you can make confident choices about your coverage that suit your specific needs.
What’s included in home insurance?
Home insurance typically covers two main areas:
Buildings insurance protects the structure of your home – walls, roof, floors and permanent fixtures like kitchens and bathrooms. It also covers outbuildings such as garages and sheds, protecting against damage from fires, storms, floods, subsidence or vandalism.
Contents insurance covers your possessions – essentially anything you’d take with you if you moved house. This includes furniture, electronics, clothing and other belongings.
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Do you need home insurance?
While not legally required, mortgage lenders almost always insist on buildings insurance before approving a loan. Even if you’re not required to have it, home insurance is a smart move—your property is likely one of your biggest financial assets, and insurance protects it from unforeseen damage or loss.
According to the Association of British Insurers (ABI), the average home insurance claim payout rose by 24% to £4,300 in the second quarter of 2023. In cases of storm or weather-related damage, claims can rise even higher, with some averaging nearly £5,000 per incident. Without cover, these costs would come straight out of your own pocket.
How much coverage do you need?
For buildings insurance, you need coverage for the rebuild cost, not the market value. The rebuild cost is how much it would take to reconstruct your home from scratch.
You can find this figure in your mortgage valuation or professional survey. The Association of British Insurers also offers a rebuild cost calculator to help with this calculation.
For contents insurance, create an inventory of your possessions and estimate replacement costs. Include everyday items like clothing and kitchenware, plus higher-value items such as jewellery or electronics.
Remember that insurers set single-item limits – if you own items exceeding this limit, you’ll need to list them separately in your policy.
What affects your insurance premiums?
Several factors influence how much you’ll pay:
- Location – areas with higher crime rates or flood risks typically have higher premiums
- Property characteristics – the age, construction materials and condition of your home
- Security measures – homes with security systems and smoke detectors often qualify for discounts
- Claims history – frequent claims can lead to higher premiums
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How to reduce your insurance costs
Getting the right coverage doesn’t mean paying over the odds. These simple strategies can help lower your premiums while maintaining protection. You can make your home insurance more affordable without compromising on necessary coverage:
- Compare options – use comparison websites to find the best deal for your needs
- Consider a higher excess – opting for a higher voluntary excess (the amount you pay towards a claim) can lower your premium
- Improve home security – installing approved alarm systems and secure locks can lead to discounts
- Buy combined policies – purchasing buildings and contents insurance from the same provider often results in savings
- Maintain a no-claims discount – avoiding small claims builds up a discount over time
- Pay annually – while monthly payments spread the cost, paying annually is typically cheaper overall
What might not be covered?
It’s important to check your policy details carefully. Being aware of these common exclusions can help you avoid unexpected gaps in your protection.
Standard policies typically exclude certain events:
- Flooding – homes in high-risk flood areas may need separate flood insurance
- Subsidence – damage from ground movement might require specific coverage
- Accidental damage – covering unintentional damage often requires additional coverage
- Items taken outside the home – laptops, jewellery, and other valuables may need extra protection
Making a claim
Acting quickly and methodically after an incident helps ensure a smoother claims process.
Follow these steps for the best outcome.
- Notify your insurer immediately after the incident
- Document the damage with photographs and detailed notes
- Provide supporting evidence like receipts and police reports (for theft)
- Complete claim forms accurately to prevent delays
- Keep copies of all correspondence and submitted documents
Taking action
Home insurance ensures that your property and belongings are protected against unexpected events. By understanding your coverage needs and implementing cost-saving measures, you can ensure you’re adequately protected without overpaying.
Review your policy annually to keep it aligned with your changing needs and circumstances. You may need to update your coverage if you’ve recently renovated your home or purchased valuable items.
Let’s help you find the right protection for your home. For more advice on property matters and insurance requirements, contact your local Martin & Co branch today.
