There are two types of insurance for your home. Buildings insurance will pay for the repair or rebuilding of your house in the event there is major damage such as fire or a falling tree. Contents insurance covers the damage or loss of contents such as furniture or jewellery in the case of fire, theft or even accidents.

Buildings insurance is not legally mandatory. However, most mortgage lenders insist you have buildings insurance so that if your home is damaged, they are not left without collateral for the loan.
Contents insurance is neither legally mandatory, nor required by mortgage companies but it can be costly to replace things like furniture, curtains or jewellery in the event of water or fire damage if you don’t have contents insurance.

If your property is freehold (as is the case with most houses), the homeowner is responsible for all insurance. If you are in a leasehold flat, then the freeholder is usually responsible for the buildings insurance, and the flat owners are responsible for getting their own contents insurance.

How much you pay for home insurance depends on a number of factors including: the value and type of property, whether you have previously made claims, your voluntary excess, the security of your home – types of locks and whether you have an alarm, the number of people living in the home and the location of the property. For contents insurance, the value of your belongings and the level of cover you require also affects the cost. Your credit score may affect how you are able to pay for your insurance — whether you can do monthly payments.

Buildings insurance will protect you against the costs of repairing your home after a fire, flood or other serious damage. Meanwhile, contents insurance will cover the costs of any damage, loss or theft your belongings inside your home. Always check with your insurer to see exactly what’s included, as it varies from policy to policy.

In July 2024, according to our partners at Soepa, home insurance premiums have soared up to 220%. One UK resident experienced a 10-fold hike, with their premium jumping from £100 to £1076. So it’s more important than ever to compare insurance quotes annually.

Factors driving the increases include:
1. Rising repair costs
2. Extreme weather leading to increased claims
3. Market shifts resulting in fewer insurers, less competition and higher premiums
4. More claims, even for minor damages