A Guide to Home Insurance

If you’re looking to protect your property and belongings from unexpected events like fire, theft, or flooding, home insurance can offer some valuable peace of mind. Here, we’ll cover how home insurance works in the UK, the different types of policies available, and where to find the most affordable quotes.

What is home insurance?

Home insurance is a type of financial protection that covers the cost of repairing or replacing your home and its belongings if they are damaged, destroyed, or stolen. It’s one of the most important forms of insurance for homeowners, but it can also be essential if you’re renting, depending on your situation.

There are usually two main components of home insurance:

• Buildings insurance: Covers the structure of your property, including walls, roof, windows, floors, and permanent fixtures like boilers, kitchens and bathrooms. It’s particularly useful for adverse weather incidents, such as storms and floods, or in the event of a fire.

• Contents insurance: Protects the items inside your home, such as furniture, appliances, electronics, and personal belongings. This insurance is most helpful for instances of burglary or accidental damage. It usually covers the majority of goods in your house that aren’t fixed down.

How does it work?

To keep your home insurance policy valid, you pay a monthly or annual premium to your insurer. If something happens that’s covered by the policy, perhaps a burst pipe or a break-in, you can make a claim to help cover the cost of repairs or replacements.

Most policies come with a certain level of excess that you must pay to your insurer when making a claim. Typically, the excess on home insurance policies ranges from £50 to £1,000. If your claim is successful, the amount you’re paid depends on:

• The level of cover you’ve chosen.

• Whether you have any single-item limits (the maximum an insurer will pay per item).

• The value of your belongings or rebuilding costs.

• Any excess you’ve agreed to pay when you claim.

Most policies have specific terms about what is and isn’t covered, so it’s essential to read the policy documents carefully. Some home insurance policies also include additional cover options, like cover for possessions away from home, accidental damage, or alternative accommodation if your home becomes uninhabitable.

Types of policies available

There are a few different ways you can structure your home insurance cover, depending on your needs:

Buildings insurance

This covers the structure of your home, including permanent fixtures. It’s an essential insurance for homeowners (and most mortgage lenders will request you have a policy, even though it’s not a legal requirement). It usually covers damage from things like fires, floods, subsidence, or storms.

Contents insurance

This is for the belongings inside your home. If you’re a renter, you might only need contents insurance because your landlord should have their own buildings insurance. It protects everything from furniture and gadgets to jewellery and clothes. Usually, you can pay extra to cover accidental damage or losses away from home.

Combined buildings & contents insurance

Many people choose to combine buildings and contents home insurance for comprehensive cover, so that the building and everything inside it is covered under a single policy. This can be simpler to manage and sometimes cheaper than arranging two separate policies.

Specialist home insurance

In some cases, you may need specialist home insurance. For example, if the insurance is for a listed building, a holiday home, or a high-value property, you’ll likely need specialist insurance, which sometimes means approaching bespoke providers.

Group home insurance

Although less common than life insurance, income protection, or critical illness benefits, some employers offer home insurance discounts through group schemes. Insurers are also more commonly offering ‘work from home’ policies, which can be useful if you’re self-employed or if you do the majority of your work remotely.

How home insurance applications get assessed

When you apply for home insurance, insurers usually carry out a detailed assessment of your property and personal circumstances to determine your level of risk and how much your policy will cost.

Here are some key areas insurers consider when it comes to your home insurance eligibility and premiums:

• Property details: Insurers will ask about the age and type of property you live in (like whether it’s a house, flat, or bungalow), the construction materials used (standard or non-standard construction), and whether it has any special features, such as a thatched roof or listed building status.

• Location risks: Your postcode plays a big part in the assessment. Insurers will check crime rates, flood risks, subsidence history, and your proximity to rivers or coastal areas. Homes in higher-risk locations may have higher premiums or limited options for cover.

• Rebuild cost and contents value: The insurer will need to know the rebuild value of your home (not its market value) and the value of your contents. If you underestimate these amounts, you could risk being underinsured, which might reduce your payout in the event of a claim. It’s also worth being aware of things like single-item limits.

• Level of cover and excess: Some insurers may offer varying levels of insurance with specific benefits or more comprehensive cover. You may also get the option to select how much excess you’d pay in the event of a claim, which can impact the cost of your premiums - a higher excess meaning lower premiums and vice versa.

• Security measures: You’ll be asked about the security features of your home, such as door and window locks, burglar alarms, CCTV, or membership in a neighbourhood watch scheme. Properties with good security often qualify for lower premiums.

• Previous claims history: Insurers will look at whether you've made any previous home insurance claims, what they were for, and how recently they happened. A history of frequent claims can lead to higher premiums or limited insurance options.

• Optional cover and add-ons: If you choose to add extras like accidental damage cover, protection for contents away from home, home emergency assistance, or legal protection - these will be factored into the final cost of your policy.

Get a bespoke home insurance quotes comparison online

Finding a suitable home insurance policy at the right price can sometimes feel overwhelming. With so many options and providers available, it can be tricky to know if you’re getting the best deal.

Our insurance advisers can quickly provide accurate, tailored quotes based on your situation. They can compare multiple insurers for you, help you avoid common pitfalls, and find discounts or bundled insurance deals that may not be advertised online.

If you’d like a free, no-obligation chat with a home insurance specialist, you can get started here:

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What is the average cost in the UK?

The cost of home insurance varies widely depending on your property and personal circumstances. To give you a rough guide, here are the latest average costs for home insurance from the Association of British Insurers (ABI):

Factors such as your location, the size and value of your home, and the level of coverage you choose will all affect your final premium. Remember, the cheapest policy isn’t always the best; it’s essential to ensure you’re adequately covered for the unique risks you may face.

Best UK insurers for home insurance

The best home insurance provider for you depends on your budget, coverage needs, and personal circumstances. To give you a few examples, here are some popular UK providers offering high-quality home insurance:

• Aviva: Aviva’s standard home insurance policies include cover for fire, theft, subsidence and weather damage, plus alternative accommodation if your home becomes uninhabitable. As optional add-ons, you can also get cover for accidental damage, legal services, protected no claims, and home emergencies.

• Direct Line: Home insurance with Direct Line is available in three levels: ‘Home Insurance’, ‘Home Insurance Plus’, and ‘Select Premier’. The level of cover varies across each option from £1 million to unlimited for buildings insurance, and from £50,000 to unlimited for contents. As with all policies, there are certain conditions; for example, damage or theft isn’t covered if your house is unoccupied for more than 60 days.

• LV=: Liverpool Victoria (LV=) offers flexible home insurance policies across three levels: ‘Essentials Home Insurance’, ‘Home Insurance’, and ‘Home Insurance Plus’ - each with a range of benefits and limits. You can get working from home cover with some policies, and there’s a 12-month guarantee for any repairs if you use their recommended repairer service.

If you’re not sure which provider is best for you, a quick conversation with a home insurance adviser can point you in the right direction.

Why choose Teito for your home insurance needs?

Finding the right home insurance doesn’t have to be complicated. At Teito, we specialise in helping homeowners, landlords, and tenants secure tailored protection that fits your property, lifestyle, and budget.

Our advisers are experts in the UK home insurance market and can guide you through the process to ensure you get the best possible deal with the correct level of cover for your property and contents.

Here are some more reasons why people across the UK trust us to help them find their home insurance:

• We can get bespoke home insurance quotes

• Our advisers have 5-star ratings on leading review sites

• Your first chat is free, with no obligation to proceed

• Access to specialist insurers with exclusive home insurance deals

Ready to get a free, no-obligation chat with an adviser who specialises in home insurance? Get started here.