House & Home Insurance

Set out below are some of the questions that people ask most frequently in connection with household insurance together with some answers.

1. What is the difference between contents insurance and buildings insurance?

Basically a buildings insurance policy covers you against damage to the structure of your home and anything fitted to it (kitchens for instance). A contents insurance policy covers you for loss or damage to anything in your home which is moveable. Many insurance companies will try to sell you both types of policy at the same time. However, though similar in some respects buildings and contents insurance policies are very different in others. Buildings insurance is pretty much essential. If your house burns down you will need every penny of cash you can lay your hands on to build another one  - unless you are fabulously wealthy. If, on the other hand, someone steals your toaster this is, arguably, not the end of the world. See our 'Basic info' page for more on the differences between the two types of policy

2. How much should I insure my home for?

For buildings insurance this is pretty straight-forward. The answer is the rebuilding cost of the property. If your home burns down you need enough money to enable you to build another. Note this is not the same as the market value of your home which might be quite a lot higher, particularly in the South and South East of England or in London. For contents insurance the answer is more complicated. An insurance company will tell you that you need to insure the contents of your home for their full replacement value. And that is every moveable item in the home. However, there may be circumstances in which you do not want to do this. See our 'Cost' page for more

3. Who should I buy my insurance from?

There are three main ways to buy household insurance: (i) directly from a single insurance company; (ii) via a broker who will scour the market on your behalf and come up with the cheapest option that best suits your needs; or (iii) using directory type sites on the internet that allow you to compare the pricing and other terms offered by a range of insurance providers. There is no simple answer to this question. However, broadly speaking if your insurance needs are fairly standard you are probably best off going via the internet. If, however, your needs are more complicated and/or you need specialist advice you are probably better off using a broker. Also bear in mind that insurance bought over the internet tends to be 10-15% cheaper than that bought elsewhere

4. Will I get a no claims discount?

The concept of a no claims discount is more common for car insurance (where, in fact, it is standard). However, many providers of home insurance products will also reward customers who have a good claims record. You could be entitled to a discount of up to 50% on your contents insurance if you do not make a claim for 5 years and 20% if you do  not make a claim for 5 years on your buildings insurance

5. How do I make a claim?

The claims procedures vary from insurance company to insurance company and you should read the 'how to make a claim' section in your policy document carefully before making a claim. However, there are one or two general things you should and should not do. First, if there has been a burglary call the police. Second, do not move things around in the immediate aftermath of a fire or a burglary unless you absolutely have to. Third, do not go out on a shopping spree until you have discussed your claim with the insurance company and you are quite sure you know what they will and will not pay for

6. Are my possessions covered under a contents policy while outside the home?

The short answer to this is that if you are outside your home with possessions that you would normally expect to carry around then yes, they are probably covered. If you took your sofa for a walk you would be unlikely to be able to make a claim. However, such items as money, jewellery, credit cards, luggage, clothes and sports equipment would usually be covered under a contents insurance policy 

7. Am I covered for accidental damage?

This will depend on the policy and what has been damaged. However, the safe rule of thumb is to assume that you are not covered for accidental damage unless you have taken out a policy that specifically covers it

8. How do I reduce the cost of my household insurance?

You will find a more detailed answer to this question on our 'Cost' page. However, in short, there are several ways to reduce the cost of your household insurance including: (i) increasing the amount of the voluntary excess; (ii) paying for small claims yourself; (iii) increasing the security in your property; (iv) deliberately underinsuring the value of your contents - but make quite sure you understand what you are doing here; (v) cutting down trees and (vi) buying your policy online

9. Will my claim be settled 'old for new'?

If you make a claim under a household insurance policy it is likely that some of the items you have lost will not be new and will therefore cost more to replace than they are worth second hand. Insurance companies use the phrase 'old for new' to describe the process of replacing a lost old item with an amount of money that is sufficient to allow you to buy a new replacement. For most items your claim will indeed be settled on an 'old for new' basis but check the wording of your policy document to make sure that this applies in your case

10. Are bicycles covered under a contents insurance policy?

In most cases yes they are. But again check the wording of your policy to make sure