I’ve been told to buy home insurance, but what is it?

Anyone who has been told to buy home insurance has been given good advice, but you should also know what home insurance is before you make the purchase. Home insurance is simply an insurance policy that financially protects your home and its contents, but not every home insurance policy is the same and not every home insurance customer has the same requirements.

Home insurance sections

Before you buy home insurance you should understand that there are various different parts that make up a home insurance policy. The main two parts are buildings cover, which looks after the structure of the home, and contents cover which looks after the contents of your home. Not every customer will need both elements of the cover, so before you buy home insurance check which categories you need.

Home insurance circumstances

If, for example, you rent your home, it will be your landlord’s responsibility to insure the structure of your home, and you will just need the contents cover element of the home insurance policy. If you own your home then you are responsible for both and you will need to buy home insurance for both contents and buildings cover. If you own your home through a leasehold, which is common on flats, your freeholder may be responsible for the building, and before you buy home insurance you should check if you just need contents cover.

Boiler cover and Appliance Warranties

When you buy home insurance you may also be able to add extras like boiler cover, which insures your boiler against breakdown, and will pay for any replacement or repairs, and appliances warranties, which extends the warranties of all of your appliances while you have the home insurance policy.

Multiple Birth cover

You can also take out extra cover when you buy home insurance for multiple birth cover, which will pay you a lump sum payment if you have twins whilst the policy is still valid.

Landlord insurance

Landlords will also need to buy home insurance, although they may just be interested in insuring the structure, carpets and boiler in their home, so they may find a cheaper price by buying landlords insurance instead. Landlords insurance may also provide insurance if the tenant fails to pay their rent, and could pay you the money you would have received instead.

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