Home insurance is designed to cover the cost of unexpected damage or theft to your property and belongings. There are two main types of home insurance; buildings and contents insurance and knowing which one you need, as well as the best provider, can be difficult. In this article, we explain what home insurance is, what it covers and the best home insurance providers. We also share the best way to buy home insurance and ways to save money on your home insurance policy. We recommend reading the article in full, but you can jump to specific sections of the article using the following links:
- What is home insurance?
- Do I need home insurance?
- Compare the best home insurance providers
- How much does home insurance cost?
- How to buy home insurance
- How to save money on home insurance
1 minute summary
- Home insurance covers financial loss against damage to the building or your belongings as well as loss or theft.
- There are two main types of home insurance; buildings and contents insurance.
- The easiest way to compare and save on your home insurance is via a comparison site.
- We have partnered with Quotezone* so that you can search and compare cheap quotes from over 40 UK home insurance providers.
- Not all providers are featured on comparison sites, however, so you could get a better deal with companies such as Direct Line directly.
- You may also be able to save money on your home insurance via cashback sites such as TopCashback*
What is home insurance?
Home insurance covers the cost to repair or replace damage to the structure of your home or the belongings inside your property. Buildings insurance is specifically designed to cover the cost of structural damage and damage to fixtures and fittings within your home. Contents insurance insures your belongings inside the home, e.g. your phone, carpet and sofa. Home insurance typically covers damage caused to your property or belongings as a result of fire, flood, storms and vandalism and you are also likely to be covered if your belongings are stolen. Exactly what you are and are not covered for does however vary between providers so you need to ensure you read your policy documents carefully.
A detailed explanation of the differences between home insurance policies can be found in our article, ‘What are the different types of home insurance?‘
Do I need home insurance?
If you are a homeowner, home insurance should be an essential consideration as it covers financial loss as a result of damage to your property or belongings. In most cases, buildings insurance is likely to be a condition of your mortgage with your mortgage provider and you may be required to prove that your house is insured before the sale goes through. If you rent a property you may not need to purchase buildings insurance as this is usually covered by the homeowner but contents insurance should be considered as it protects your personal belongings in the home. More information on whether you need home insurance based on your personal circumstances can be found in our article, ‘Do I need home insurance?‘
How much home insurance do I need?
How much home insurance you need varies depending on your property size and what you are insuring. There are a number of online calculators that can help you work out how much you need to insure. Remember though that you are insuring the rebuild value of your home with buildings insurance and not how much your property is worth. Also, double-check that you are not duplicating cover with any insurance policies you already hold.
What are the best home insurance providers?
In the following table, we compare some of the best home insurance policies on the market, however, it is recommended, as with all insurance products, that you conduct your own research on the best policy for your circumstances as this is likely to vary between consumers. An easy way to compare providers is via a comparison site as they allow you to compare multiple providers at once.
We have partnered with Quotezone* so that you can search and compare cheap quotes from over 40 UK home insurance providers. Not all providers are featured on comparison sites, however, and you may therefore not get the best deal.
How much you pay for your home insurance policy will vary depending on where you live, your property type and the policy excess.
Best home insurance companies
|Admiral||Direct Line||John Lewis||LV=||Nationwide|
|Policy name||Platinum||Home Insurance Plus||Gold||Home Plus||Buildings and Contents|
|Contents cover||Up to £150,000||Up to £100,000||Unlimited||Up to £150,000||Choose between under £50k or over £50k options|
|Alternative Accommodation||Up to £100,000||Up to £50,000||Unlimited||Up to £100,000||Up to £50,000|
|Home Emergency cover||Optional add-on||Optional add-on||Optional add-on|
|Accidental Damage cover||Optional add-on||Optional add-on|
|Personal Possessions cover||Optional add-on|
|Legal cover||Optional add-on||Optional add-on||Optional add-on|
|Defaqto rating||5 stars||5 stars||5 stars||5 stars||5 stars|
|Good for…||Emergency boiler cover included as standard||Matching sets and suites cover||No admin or cancellation fees||12-month guarantee on repairs when using recommended repairers||0% interest when paying monthly|
How much does home insurance cost?
How much you pay for your home insurance varies depending on a number of factors including your property size, where you live, how much it costs to rebuild your home and what you are insuring, therefore it is difficult to pinpoint how much you can expect to pay.
However, according to the Association of British Insurers (ABI) the average cost of a combined buildings and contents home insurance policy in the first quarter of 2023 was £315. Buildings insurance on its own was an average of £236 a year and contents insurance cost £117 on average in the first quarter 2023, which shows that it can be cheaper to purchase a combined policy rather than two separate policies.
For more information on how much you can expect to pay for your home insurance policy, and what affects the costs, read our articles:
How to buy home insurance
One of the quickest and easiest ways to purchase a home insurance policy is via a comparison site such as Quotezone*. Comparison sites allow you to compare multiple home insurance providers at once to find the best deal for your circumstances. We have partnered with Quotezone* so that you can search and compare cheap quotes from over 40 UK home insurance providers. However, it is worth remembering that comparison sites are not always whole of market and so you may be able to find a better deal elsewhere. Additionally, some providers such as Direct Line, are not featured on comparison sites so you would need to visit the website directly to get a quote.
Before taking out home insurance, there are some things that you should consider to ensure you are getting the best deal, including the home insurance policy type, how much it costs to rebuild your home and the policy excess. You may also wish to consider when is the best time to buy home insurance.
How to save money on home insurance
Home insurance is an essential purchase for most people but it can be expensive. Below we list some ways in which you can save money on your home insurance policy but additional information can be found in our article, ‘How to save money on home insurance‘.
- Shop around – Comparing home insurance quotes with multiple providers can be the easiest way to save money as the first quote you receive is unlikely to be the cheapest. Comparison sites such as Quotezone* can make this easy as they allow you to compare multiple providers at the same time to show you the cheapest deal.
- Check if you can get cashback – Cashback sites such as TopCashback* may have cashback offers when you take out a policy with certain providers. For example, you can earn up to £105 cashback when taking out an AXA landlord insurance policy via TopCashback.
- Combine your policy – combining your buildings and contents insurance can be cheaper than two separate policies.
- Pay annually – paying your insurance premium annually can save you money on interest fees charged by the provider. Damien explains more in this handy video.
- Increase your policy excess – agreeing to pay more upfront when you make a claim can help to reduce the cost of your monthly or annual premium, although you do need to consider that this is the amount payable when you claim.
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 or take advantage of any exclusive offers – Quotezone, TopCashback