If you own a home, likely, you have already spent a lot of money, and you are committed to spending more money each month for some time. Naturally, homeowners look to save money where they can, but there are some expenses that you must budget for, including home insurance.

While it is hoped you never have to call on insurance, you will be relieved it is in place if you do. You will likely have some form of insurance for your home, as most mortgage lenders insist on it.

However, homeowners have options for covering their home, and you must find the option that is best for you. Your budget will dictate the sort of policy you can afford, but you must also consider the level of protection you need.

If you don’t have the right level of cover in place, the cost of replacing essential items might be too much. Most homeowners are aware of this, but receiving a reminder of why home insurance is vital is never a bad thing.

What cover is available for homeowners?

When it comes to cover for your home, the main options are:

  • Buildings only insurance
  • Contents only cover
  • Combined buildings and contents insurance, most commonly known as home insurance

Understandably, home insurance provides you with the most significant level of protection. You also find that home insurance offers greater value for money if the provider bundles them together, allowing you to save when holding two separate packages.

What does buildings insurance cover?

Given the name, it is no surprise that buildings insurance covers your property’s bricks and mortar. Each policy is likely to be unique, so check what is covered before agreeing to the deal, but building insurance offers protection from the following issues:

  • Collapse of aerials or satellite dishes
  • Collision by vehicles or animals
  • Falling trees
  • Fire, smoke and explosions
  • Flood and escape of water
  • Malicious persons and rioting
  • Natural disasters like earthquakes
  • Storms and lightning
  • Subsidence – although this is only covered by some policies

Some buildings insurance policies will also cover elements such as sheds or garages, and you might find permanent features such as bathroom suites or kitchens covered by the policy. Again though, check the items you need to be protected are included in your policy.

What does contents insurance cover?

As the name suggests, contents insurance offers protection for items in your property that aren’t part of the structure. Contents insurance should protect things such as mirrors, beds, couches, TVs and similar items. Many contents insurance policies protect against the following forms of damage:

  • Falling trees
  • Fire, smoke and explosions
  • Flood
  • Leaks
  • Natural disasters
  • Storms and lightning
  • Theft and attempted theft
  • Vandalism

You should note this style of insurance doesn’t offer protection against general wear and tear. Also, most policies require additional insurance to provide cover for accidental damage.

What is home insurance?

Home insurance combines buildings and contents insurance, so the policy should include the aspects listed above. Many households find the financial saving of this policy style to be helpful, but there are also administrative benefits to holding home insurance.

With one policy, there is only one renewal date to remember and less paperwork. This should make managing your home’s cover a more straightforward process.

How to explore your home insurance options with The Money Hub

You know how important home insurance is, but if you don’t devote the time or energy to finding the best deal, you might miss out on great value. Thankfully, help is at hand.

Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.

DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.