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Updated by P&W Insurance on Nov 19, 2015
Headline for What You Need To Know About Household Insurance
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What You Need To Know About Household Insurance

Having adequate insurance for your home is vital to keep you covered against the potential costs of repair in events such as a fire, flood or break in. The right household insurance cover can also protect you from the financial consequences of damage to or the loss of your valuable possessions. Here are some of the key things to consider when choosing household insurance, in order to get the best level of cover for your needs at the best premium:


There are two types of household insurance

Household insurance can be broken down into buildings and contents insurance, which you can either get separately, or combined. Buildings insurance covers the actual structure of your home, including permanent fixtures such as sinks or kitchen units. Contents insurance applies to the moveable items in your home such as furniture, your clothes or any electrical goods.


You may not need buildings insurance

If you are renting a property, it’s the responsibility of the landlord to obtain buildings insurance. However if you have a mortgage on your home, buildings insurance will be a condition of your mortgage agreement. You’ll need to have buildings insurance in place from the date of exchange, so that you have a financial interest in the property from the outset.


Additional cover

Your insurance policy can be extended to include cover for items such as students' belongings away from home, travel cover and the family's vehicles - all in the one policy. Accidental damage cover can also be added to your contents policy, keeping you protected against common eventualities such as spill stains or water damage.


Contents estimation

It’s especially important not to underestimate the value of the contents in your home, as you could end up facing highly expensive claim costs. A good idea is to use an online contents calculator, or go round and thoroughly check the value of items in your home - many people underestimate the value of their clothes, books or other collections.


Protection limits

You may benefit from adding specific personal possessions to your contents policy, if you want cover for items such as laptops, jewellery or other precious and highly valuable items that you want to insure. Adding these in specifically will mean that they are covered when you’re out, as well as when you’re at home.


Excess fees

With household insurance, you’ll need to pay an excess fee towards the cost of the claim. Most insurers provide a compulsory excess, though these can vary, so keep this in mind when comparing prices.


Shop around

Though you may need cover as a condition of your mortgage if you own your property, you don’t have to purchase this from your mortgage provider if you can find a better deal elsewhere. It’s also a good idea to shop around if you’re due to renew your insurance, so that you can find the best deal and potentially make great savings.