Home insurance protects your property and belongings against damage, theft, and disasters. This guide explains how UK home insurance works, what cover you need, and how to get the best deal.
Types of Home Insurance
Buildings Insurance
Covers the structure of your property — everything that would stay if you turned the house upside down and shook it:
- Walls, roof, floors, ceilings
- Windows and doors
- Fitted kitchens and bathrooms
- Permanent fixtures (built-in wardrobes)
- Garages, sheds, outbuildings
- Driveways, paths, fences, gates
Best for: Homeowners (essential if you have a mortgage)
Contents Insurance
Covers your belongings — everything you’d take with you if you moved:
- Furniture
- Electronics (TVs, laptops, phones)
- Clothes and shoes
- Kitchen appliances (freestanding)
- Jewellery and watches
- Artwork and collectibles
- Sports equipment
Best for: Everyone — renters, homeowners, flat-sharers
Combined Buildings and Contents
Most homeowners buy a single policy covering both:
- Simpler to manage (one renewal, one excess)
- Often cheaper than two separate policies
- Single claims process
What Home Insurance Covers
Standard Cover (Usually Included)
| Risk | Buildings | Contents |
|---|---|---|
| Fire | ✓ | ✓ |
| Theft | ✓ | ✓ |
| Flood | ✓ | ✓ |
| Storm damage | ✓ | ✓ |
| Subsidence | ✓ | – |
| Escape of water (burst pipes) | ✓ | ✓ |
| Falling trees | ✓ | ✓ |
| Vehicle/aircraft impact | ✓ | ✓ |
| Vandalism/malicious damage | ✓ | ✓ |
Optional Extras
| Extra | What It Covers |
|---|---|
| Accidental damage | Mistakes like putting foot through ceiling, spilling wine |
| Personal possessions | Items away from home (phones, laptops, bikes) |
| Legal expenses | Disputes with neighbours, employers, etc. |
| Home emergency | Boiler breakdown, blocked drains, lock-outs |
| Family legal protection | Legal advice and representation |
| Bicycle cover | Named bikes covered anywhere |
| High-value items | Listed valuables above single-item limits |
What’s NOT Covered
Be aware of common exclusions:
- Wear and tear — Old boilers breaking, frayed carpets
- Gradual damage — Slow leaks, rot that builds over time
- Lack of maintenance — Damage from not fixing known problems
- Deliberate damage by you — Self-inflicted damage
- Unoccupied properties — Some policies void if home empty 30-60+ days
- Pre-existing damage — Issues present before the policy started
- Business use — Home office equipment may need separate cover
- Pets — Damage caused by your own pets
Read your policy wording carefully — exclusions vary by insurer.
How Much Cover Do You Need?
Buildings Insurance — Rebuild Cost
Buildings cover should equal the rebuild cost — what it would cost to completely reconstruct your home if destroyed.
Key points:
- Rebuild cost is NOT your property’s market value
- Market value includes land; rebuild cost is just the building
- A £400,000 house might only cost £250,000 to rebuild
- Use the BCIS rebuild calculator at abi.org.uk
Typical rebuild costs (2026):
| Property Type | Rebuild Cost (Approx.) |
|---|---|
| 2-bed terrace | £150,000-£200,000 |
| 3-bed semi | £200,000-£280,000 |
| 4-bed detached | £300,000-£450,000 |
| Period property | +20-30% for heritage features |
| London/South East | +10-20% for higher labour costs |
Underinsurance risk: If you insure for £180,000 but rebuild cost is £250,000, insurers may only pay a proportion of any claim (average clause).
Contents Insurance — Total Replacement Value
Add up what it would cost to replace everything you own:
- Bedroom: £3,000-£10,000 (furniture, clothes, electronics)
- Living room: £5,000-£15,000 (sofa, TV, entertainment)
- Kitchen: £2,000-£5,000 (appliances, equipment)
- Valuables: Variable (jewellery, watches, art)
Typical contents values:
- Single person, flat: £15,000-£25,000
- Family home: £35,000-£75,000+
Use a home contents calculator or room-by-room list. Most people underestimate.
Excesses Explained
The excess is what you pay towards any claim. Higher excess = lower premium.
Types of Excess
| Type | How It Works |
|---|---|
| Compulsory excess | Set by insurer, must be paid |
| Voluntary excess | You choose — higher = cheaper premium |
| Subsidence excess | Usually £1,000+ for subsidence claims |
| Escape of water excess | Often higher than standard claims |
If you have a £250 compulsory excess and £250 voluntary, you pay £500 before insurers pay anything.
Single-Item Limits and Valuables
Standard policies limit how much they’ll pay for any single item — often £1,000-£2,000.
If you own items worth more:
- List them individually with values (specified items)
- Pay extra premium for high-value cover
- Keep receipts and valuations as proof
Items often needing separate cover:
- Engagement rings
- Watches over £1,000
- Artwork
- Antiques
- Musical instruments
- Photography equipment
- Designer bags
- Collections (coins, stamps, wine)
Away From Home Cover
Standard contents insurance only covers items inside your home. For belongings taken outside, you need:
- Personal possessions cover (all-risks) — Covers items anywhere in the UK
- Worldwide cover — Protects items abroad too
- Named item limits still apply away from home
Worth considering for:
- Expensive phones/laptops
- Bicycles (often capped at £500-£1,000)
- Sports equipment
- Jewellery worn daily
Accidental Damage — Do You Need It?
Accidental damage covers genuine mistakes. Without it:
| Scenario | Covered Without Accidental Damage? |
|---|---|
| Burglary | ✓ (theft is standard) |
| House fire | ✓ (fire is standard) |
| Storm damage | ✓ (storm is standard) |
| Spilling paint on carpet | ✗ |
| Child drawing on walls | ✗ |
| Drilling through a pipe | ✗ |
| Dropping laptop | ✗ |
| Putting foot through ceiling | ✗ |
Accidental damage costs £30-£100 extra per year. Worth it for families with children or if you’re DIY-prone.
How to Get Cheaper Home Insurance
Before You Buy
- Increase your voluntary excess — £250→£500 cuts premiums 10-20%
- Improve home security — Deadlocks, burglar alarms (especially monitored)
- Choose annual payment — Monthly direct debit adds interest
- Bundle buildings + contents — Combined is often cheaper
- Accurate valuations — Don’t over-insure (pay more for cover you can’t use)
When Renewing
- Never auto-renew — Prices increase for loyal customers
- Get quotes 3-4 weeks before renewal
- Use comparison sites — Then check insurer direct prices too
- Negotiate — Call your current insurer with cheaper quotes
- Check cashback sites — Extra savings via Quidco, TopCashback
Discounts to Ask About
- No claims discount
- Over-50s discount
- New home discount
- Multi-policy discount (car + home)
- Neighbourhood Watch membership
- Smart home devices (water leak sensors, smart locks)
Making a Claim
What to Do
- Secure your property — Prevent further damage
- Report to police — Required for theft claims (get crime reference)
- Take photos/videos — Document damage immediately
- Contact insurer promptly — Most require notification within days
- Keep damaged items — Don’t throw away without insurer permission
- Get repair quotes — At least two if possible
What Insurers Ask For
- Policy number
- Detailed description of what happened
- Date and time of incident
- Photos of damage
- Receipts/valuations for lost items
- Police crime reference (theft/vandalism)
- Quotes for repairs
Things That Can Void Claims
- Leaving doors/windows unlocked (theft)
- Home unoccupied 30-60+ days without informing insurer
- Not maintaining property (gradual damage)
- Misrepresenting facts when buying policy
- Claiming for pre-existing damage
Special Situations
Renters
- Only need contents insurance
- Landlord’s buildings policy covers the structure
- Consider liability cover (if you damage landlord’s property)
- Declare if you’re in a flatshare — some policies limit this
Listed Buildings
- Higher rebuild costs (specialist materials, heritage compliance)
- Some insurers specialise in listed properties
- Standard comparison sites may not cover
- Inform insurer of Grade I/II listing
Flood Risk Properties
- Use Flood Re scheme if standard insurers won’t cover
- Check flood risk at: check-long-term-flood-risk.service.gov.uk
- Consider flood resilience measures for discounts
- Some policies exclude flood — check before buying
Home Businesses
- Standard home insurance may not cover business equipment
- Declare any home business use
- May need separate business equipment cover
- Working from home (employed) usually fine
Related Guides
- Home Emergency Cover Guide — Boiler breakdown, plumbing
- How to Make an Insurance Claim — Step-by-step
- Life Insurance Guide — Protecting your family
- First-Time Buyer Guide — Insurance when buying
- Complete Insurance Guide — All insurance types
Insurance prices and policy terms vary between providers. Always read the policy wording before buying and ensure cover meets your needs.