Your Home Insurance Questions Answered

Is home insurance compulsory?

There is no law saying you have to have home insurance, though you will probably require buildings insurance as a condition of your mortgage.

What is the difference between buildings and contents?

Buildings insurance covers the structure, fixtures and fittings of your home, such as roof, walls, ceilings, floors, doors and windows, plus certain outdoor structures. Contents Insurance covers possessions such as electrical goods, furniture, carpets and jewellery.

How can I save money on home insurance?

Here are four quick ways to save:

1. Use comparison sites like Confused.com to find home insurance bargains.
2. Switch every year. Home insurance competition means prices change all the time, so you could find cover for less than you paid last year.
3. Only pay for what you need, e.g. don't over insure your property, and consider whether you really need extras like accidental damage cover. See Home Insurance - how much do I need? for more details.
4. Agreeing to pay a higher level of excess insurance will reduce your premiums.

How much buildings cover should I get?

You only need to insure for the cost of rebuilding your home and not its market value. The rebuild cost can be approximated by using a rebuild calculator. See Home Insurance - how much do I need? for more details.

How much contents cover should I get?

A typical three bed home needs £50k cover at least. To work out how much you need, walk around your home and list the contents of each room. Do the same in the garden, shed or garage if required. Tot up the value of all the items to arrive at how much contents cover you require. To remain adequately insured, don't forget to increase cover when necessary, e.g. after buying expensive new items for your home. See Home Insurance - how much do I need? for more details.

What is voluntary excess?

This is the amount of any claim that you agree to pay over and above the insurer's compulsory excess. For example, if your home insurance has compulsory excess of £100, voluntary excess of £100, and you make a claim for £300, you will only receive £100 back in compensation as the various excesses total £200. However, the more voluntary excess you agree to pay, the lower your premiums.

What does new-for-old mean?

If your contents cover includes 'new-for-old', then any insured items that are stolen or damaged will be replaced as new, regardless of age. E.g. if you break your five year old laptop, the insurer will replace it with a brand new equivalent model.
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Find out more answers to your home insurance questions at http://www.confused.com/home-insurance