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Home insurance explained

What home insurance is, the difference between buildings and contents cover, what liability cover does and what affects the cost of a policy.

Home insurance covers loss of or damage to your home and belongings, and can include liability cover for injury or damage that happens on your property. It is designed to protect homeowners and renters from the financial cost of unexpected events such as theft, fire or flooding.

The two main types of home insurance

There are two main types of home insurance: buildings insurance and contents insurance. You can buy them separately or together as a combined policy.

1. Buildings insurance

Buildings insurance covers the structure of your home, including the roof, walls and floors, and permanent fixtures such as fitted kitchens and bathrooms. It usually also covers outbuildings such as garages and sheds. Policies typically cover damage caused by events such as fire, flooding, storms and subsidence.

If you have a mortgage, your lender will usually require you to have buildings insurance. If you rent, the building is normally the landlord's responsibility.

2. Contents insurance

Contents insurance covers your belongings inside the home, such as furniture, electrical items, clothing and other possessions. Policies typically cover loss or damage caused by events such as theft, fire and flooding. Some also offer accidental damage cover, or cover for items you take out of the home, as an extra.

Liability cover

Many home insurance policies include liability cover. This protects you against legal claims if someone is injured, or their property is damaged, at your home and you are found responsible.

What affects the cost

The cost of home insurance varies depending on several factors, including:

• where the property is
• the age, construction and condition of the property
• how much it would cost to rebuild, and the value of your belongings
• the level of cover and excess you choose

It is worth looking at the options available and comparing what different policies cover, so you find cover that suits your home at a price that works for you. Check that the sums insured are accurate, as under-insuring can reduce what is paid on a claim.

Why it matters

Home insurance gives financial protection against events that can damage your property or the belongings inside it, which would otherwise be very costly to put right yourself.

At Kompare, you fill in a short form, and a specialist FCA-authorised broker from our panel contacts you to talk through quotes. Find out more on our home insurance page.