insurance
Home insurance: buildings, contents, and exclusions
Two policies can have similar premiums and leave you with very different outcomes after a claim. Compare what the policy covers, what you would pay yourself, and which facts the insurer used to price it.
Decide which cover you need
Buildings insurance is for the structure and permanent fixtures. Contents insurance is for belongings. A homeowner may need both; a renter commonly looks for contents cover while the landlord arranges the building policy.
Make a room-by-room inventory for expensive or unusual items. Note the value, receipts or photographs, and any single-item limits. Check whether accidental damage, alternative accommodation, outbuildings, and home working are included.
Check the rebuild basis
The sale price includes land and location. It is not automatically the cost of rebuilding the structure. Follow the insurer’s rebuild questions and include extensions, outbuildings, and unusual construction where the policy asks for them.
Keep a dated note of the information used for the quote: occupancy, locks, renovations, lodgers, working from home, and the value of contents. Tell the insurer about material changes when the policy requires it.
Compare the parts that change the claim
Read the policy schedule and wording for:
- the excess you would pay on a claim;
- exclusions and conditions;
- limits for valuables and single items;
- escape-of-water, storm, theft, and accidental-damage terms;
- alternative-accommodation limits;
- whether wear, poor maintenance, or an unoccupied period is excluded.
A lower premium is not a like-for-like saving if it removes cover you need. Record the quote date and compare the same assumptions at renewal.
Worked comparison
Suppose Quote A costs £240 a year with a £250 excess and Quote B costs £280 with a £100 excess. The £40 annual difference does not decide which policy is better. Check whether the £280 policy also changes limits, exclusions, or the claims conditions. The right comparison depends on the risk and cost you are actually trying to cover.
Add the chosen premium to the annual home-cost budget and revisit it when the property, occupancy, contents, or policy wording changes.