Choosing home insurance starts with knowing what you need to protect, how much cover is enough and what you would pay if you claimed. A lower premium can be appealing, but the policy needs to suit your home and belongings.
Here’s what to check before you buy or renew.
Choose the cover your home needs
Home insurance comes in two main types. You can buy them separately or combine them in one policy.
YOUR PROPERTY
Buildings insurance
Covers your home’s structure and permanent fittings, including the roof, walls and fitted kitchen, against events listed in your policy.
YOUR BELONGINGS
Contents insurance
Covers your belongings, including furniture, clothes and electronics, against loss or damage from events listed in your policy.
Most mortgage lenders require buildings insurance. If you rent, your landlord normally arranges cover for the building, while you arrange cover for your own belongings.
For a leasehold flat, buildings insurance may already be arranged by the freeholder or managing agent. Check what is included before buying separate cover.
If you’re buying a home, ask your solicitor when buildings cover must start. This may be before completion.
Not sure which cover you need? Speak to a Muttuo adviser to talk through your home insurance options.
Work out how much to insure
For buildings insurance, use the cost of rebuilding your home, including demolition and professional fees, rather than its sale price. If the insurer asks for a rebuild figure, the ABI’s rebuild cost guidance can help. Listed homes or unusual construction may need a surveyor’s assessment.
For contents, work room by room and estimate what it would cost to replace your possessions. Include everyday items such as clothing and kitchenware, which can add up quickly.
Check the maximum cover for any one valuable item. Jewellery, watches or other possessions above this limit may need to be listed separately.
Compare the cover and total cost
Compare policies using the same cover levels and extras.
Alongside the premium, check:
- The excess: how much you contribute to a claim, including any compulsory and voluntary amounts.
- Different claim limits: water leaks, subsidence, valuables and belongings in sheds may have separate limits or excesses.
- Temporary accommodation: what the policy pays if an insured event makes your home uninhabitable.
- The annual cost: paying monthly may involve interest, so compare the total payable.
For example, a policy with a £500 total excess leaves you paying the first £500 of an accepted claim. Choose an amount you could comfortably afford.
Choose extras that suit your home
Optional cover can fill useful gaps, but check what is already included before paying more.
- Accidental damage may cover one-off mishaps, such as spilling paint on a carpet.
- Personal possessions cover can protect specified types of belongings away from home.
- Home emergency cover may help with urgent problems such as a loss of heating, subject to its conditions.
- Legal expenses cover can help with certain disputes, within the policy’s scope and limits.
Check for overlap with cover you already have, such as a separate boiler policy.
Check the exclusions before you buy
Home insurance generally excludes wear and tear and damage caused by poor maintenance. For example, a roof that leaks because longstanding damage was left unrepaired may not be covered.
Check conditions covering security, renovations and how long the property can stand empty. Answer the insurer’s questions accurately and tell it about changes required by your policy.
If the property has a history of flooding or subsidence, confirm that the insurer will accept it and check any restrictions or additional excesses before committing.
Review your policy before it renews
Your renewal is a useful time to check both the price and whether the cover still fits. Update the insurer about relevant changes, such as building work or valuable purchases.
Under FCA pricing rules, a home insurance renewal quote must not exceed what an equivalent new customer would pay through the same sales channel. That does not mean your premium cannot rise or that another insurer cannot offer a better deal.
Compare the cover and excesses as well as the price. If you switch, arrange the new policy’s start date to avoid a gap in protection.
Keep records to support a claim
Keep photos, receipts and valuations for important possessions, along with your policy documents and claims contact details.
If something happens, contact your insurer promptly and follow its instructions. Photograph damage where safe, keep receipts for emergency repairs and check before disposing of damaged items. These records can help the insurer assess your claim.
How Muttuo can help
Buying a home involves more than choosing a mortgage. We can help you understand your lender’s buildings insurance requirements and discuss the protection you may want in place.
Understand the buildings cover your mortgage lender requires
Consider how your home and belongings need protecting
Plan when your insurance cover needs to start
Talk through your home insurance
Tell us about your property and whether you’re buying, moving or reviewing your cover. We’ll help you understand the next steps.
