If you are in the process of buying your first home, your mortgage provider may have stipulated that you need to get a home insurance policy in place before you exchange contracts on the property, and in some cases, they may ask for proof of purchase.
In this guide, we share everything you need to know about buying home insurance for the first time, including the different types of home insurance, when you need to buy home insurance and how much home insurance costs. We also share the best way to buy cheap home insurance.
We recommend that you read the guide in full, but you can skip to specific sections using the links below.
- What is home insurance?
- What does home insurance cover?
- Do I need home insurance?
- How much does home insurance cost?
- How to save money on home insurance
- Things to consider before buying home insurance
- How to buy home insurance
1 minute summary
- There are two main types of home insurance; buildings insurance and contents insurance.
- Buildings insurance covers the cost to rebuild or repair your home due to structural damage.
- Contents insurance covers the cost to replace items inside your home due to theft, loss or damage.
- If you rent, your landlord is likely to have purchased buildings cover so you may only need to purchase contents insurance to cover your personal belongings.
- One of the quickest and easiest ways to buy home insurance is via a comparison site as they allow you to compare multiple insurers at once to get the best deal.
- We have partnered with Quotezone* so that you can search and compare quotes from up to 50 UK home insurance providers.
What is home insurance?
Home insurance is an insurance policy designed to protect your home and its contents against damage, loss or theft. There are two main types of home insurance; buildings insurance and contents insurance.
Buildings insurance covers the cost to rebuild or repair your home due to structural damage. Contents insurance covers the cost to replace items inside your home due to theft, loss or damage.
It is also possible to purchase a combined buildings and contents insurance policy, which may be cheaper than two separate policies. For more information about home insurance and the different types, read our article ‘What are the different types of home insurance?‘.
What does home insurance cover?
| What is covered? | Buildings insurance | Contents insurance |
| Damage caused by smoke/fire | Yes | Yes |
| Damage caused by vandalism | Yes | Yes |
| Damage caused by frozen/burst pipes | Yes | No |
| Damage caused by storms | Yes | Yes |
| Damage caused by an explosion | Yes | Yes |
| Damage caused by flooding | Yes | Yes |
| Damage caused by leaks | Yes | Yes |
| Damage caused by subsidence | Yes | Yes |
| Damage caused by collisions (from vehicles) | Yes | No |
| Stolen, damaged or destroyed possessions | No | Yes |
| Damage to your property | Yes | No |
| Damage to your property caused by pests | No | No |
| Damage to your property caused by leaking roof/gutters | No | No |
| Damage as a result of wear and tear | No | No |
| Mechanical or electrical failure of possessions | No | No |
| Accidental damage to possessions | No | May be optional with some policies |
Do I need home insurance?
Home insurance is not a legal requirement in the UK but if you own a property you should consider purchasing a home insurance policy. Buildings insurance covers the cost to rebuild your property if it is damaged or destroyed whereas contents insurance will help cover the cost of damage to valuables or items within the home. If you don't want to be out of pocket should something happen to your property or belongings you should consider getting home insurance.
If you are purchasing a property, some lenders will insist you purchase a buildings insurance policy as a condition of your mortgage application but a contents insurance policy is usually optional. There may be instances where you don't need both buildings and contents insurance. For example, if you rent, your landlord is likely to have purchased buildings cover so you may only need to purchase contents insurance to cover your personal belongings. For more information on home insurance and whether you need it, read our article ‘Do I need home insurance?‘
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How much does home insurance cost?
How much you pay for your home insurance varies depending on numerous factors including where you live and your property type. According to comparison site GoCompare, the average cost of an annual combined home insurance policy purchased through them between April and June 2024 was £241.
If you choose to take out just a buildings or contents policy the cost may be cheaper but this will depend on the property size as well as other factors such as applying additional extras to the policy. For more information on the price of home insurance, read our article ‘How much does home insurance cost?‘
How to save money on home insurance
How much you spend on your home insurance policy does vary depending on the size of the property, where you live and how much you are choosing to insure. Below, we list some ways you can save money on your home insurance policy but for more information read our article, ‘How to save money on your home insurance‘
- Shop around – Shopping around is one of the easiest ways to try and save money on your home insurance policy as you can compare the cost of multiple policies at once to find one that suits your needs. One of the quickest ways to do this is via a comparison site such as Quotezone*.
- Combine a policy – Combining your home insurance policies could save you money and work out cheaper than two separate policies as some insurers may offer a discount if you buy a combined policy.
- Secure your home – Some insurers may provide a discount if you fit burglar alarms or locks on your doors and windows. Some insurers require you to have security devices fitted by specific companies so ensure that you check this first.
- Increase your excess – The excess is the amount payable when making a claim on your home insurance policy. If you choose to increase your policy excess you may benefit from a reduced insurance premium. Remember, though, that this is the amount payable when you make a claim so you need to ensure that this is affordable.
- Pay annually – Paying your insurance policy annually can save you money as some insurers add a credit charge to monthly premium amounts. Damien explains more about this little-known insurance fact in this video.
Things to consider before buying home insurance
Before you choose to purchase a home insurance policy you should consider the following:
- What type of home insurance do you need? – There are different types of home insurance policies so ensure you have the right cover before taking out a policy. For example, if you are a student you are likely to only need contents insurance and you may already be covered on your parent's home insurance policy. We cover the different types of home insurance in more detail in our article, ‘What are the different types of home insurance?‘
- Only insure what you need – Remember that buildings insurance is designed to cover the cost to rebuild your home and not what your home is worth. You can use this handy tool by the Association of British Insurers (ABI) to estimate the rebuild value of your home before getting a home insurance quote.
- Do you need any additional extras? – There may be some additional extras that come with a home insurance policy such as cover for accidental damage or legal costs which may bump up your premium. Review the extras on the policy to see if this is something you actually need and if it is worth the additional cost.
- Keep on top of home repairs – Home insurance policies are unlikely to pay out for any damage that is believed to be a result of wear or tear or poor maintenance so ensure you keep up to date with regular maintenance of your property.
- Compare like for like – When comparing the cost of home insurance, ensure you are comparing like for like policies. If you are comparing a policy that is more expensive than another but offers twice as much cover for damage or contents then it is not a fair comparison.
- Do you need any other insurance? – If you are buying a home for the first time, remortgaging or moving to another property, you may need to review your life insurance policy to ensure you have enough cover. Life insurance is designed to pay out a lump sum if you die during the policy term and can be used to pay off your remaining mortgage. In addition, you may need to consider other insurance policies to help pay your mortgage costs if you are diagnosed with a serious illness or are unable to work for a long period of time due to injury. We cover the different types of insurance you may need in our article, ‘What insurance do you need when buying a house in the UK?‘
How to buy home insurance
One of the easiest ways to purchase a home insurance policy is via a comparison site as you can compare multiple policies at once to find the best one to suit your needs.
We have partnered with Quotezone* so that you can search and compare quotes from up to 50 UK home insurance providers. One thing to consider when comparing home insurance policies, however, is that not all insurers are on comparison sites so you may get a better deal directly with an insurer such as Direct Line.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses – Quotezone
