Building insurance is not an option if you have a mortgage on your house.

The lender will insist that you have it as part of the terms for agreeing the mortgage. It protects them as well as you against unexpected, devastating events such as floods and falling trees, explosions and subsidence damaging your property so badly that it needs to be rebuilt. The actual cost of rebuilding will be the sum assured. Buildings insurance also covers footpaths, gates and fitted kitchens as well as other fixed items in the house. If you are renting a flat or apartment, the landlord will probably arrange buildings insurance.

Contents insurance is optional, but it is always a good idea to take it out, because you never know when a burglar is going to turn up or when you will spill something on your expensive Persian rug. There are two types of contents insurance to choose from. New for old contents insurance covers non-fixed items against damage or loss by replacing them with brand new equivalents. Indemnity contents insurance is a cheaper option, but you will only get replacements of a similar age. Most people choose new for old contents insurance, even though the premiums are somewhat higher.

Contents insurance and buildings insurance are usually sold together as a combined home insurance policy, although you can take them out separately from different providers if you wish. If you are looking for cheap house insurance, then get home insurance quotes from a number of providers or use insurance comparison websites to narrow down the choice.

Policy Expert

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London
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