What is home insurance?

Home insurance is split into two categories; building insurance and contents insurance.

Building insurance is as the name suggests, insurance for the building itself. This type of insurance covers any damage to the structure, floors and walls of the building. As a general rule, most policies also cover fixtures and fittings which would include bathroom suites or fitted kitchens.

Contents insurance covers the loss, theft or damage to any personal possessions from the property, including home entertainment systems, white goods and furniture.

It's possible to buy these policies separately, however savings can be made when purchasing a joint policy (known as building and contents insurance).

Do I need home insurance?

Although not a legal requirement, it is advised to have a building and contents insurance policy. Many mortgage companies will insist you have buildings insurance before they will lend you the money to buy your home.

If you rent a property, you may also find the landlord will insist on seeing a contents insurance policy before you can sign the lease.