You need to take care of your home insurance in England especially if you buy it on credit. Banks require you to have such a policy when finalizing a loan agreement. Due to the large number of offers with varying conditions, choosing such insurance is not necessarily easy. So check out the types of policies in the UK and how to find the best deal.


Buying a house in the UK behind you? It’s time for insurance!

One of the first decisions to make after buying a property in the UK is choosing the right insurance. It is obligatory for people with a mortgage to take out a policy. In other cases, home insurance in England is voluntary, but in practice most property owners opt for it. This is because it allows you to obtain compensation to cover losses resulting from, for example, damage to a building due to fire or flood, or theft of property.

Very often the banks themselves offer insurance offers prepared in advance. However, it is much more profitable to compare the policies offered by different insurers on your own or, even better, to do it with the help of an experienced broker. This is because it is the best way to buy insurance at a good price that will provide exactly the protection you expect.

To begin with, it is useful to know the basic types of such insurance in the UK, which are:

  • building insurance – Building only Insurance,
  • home contents – Contents only Insurance,
  • Buliding and Contents Insurance – covering the two policies mentioned above.

Building Insurance – Building only Insurance

If you decide to buy a house in the UK on credit, the bank will require you to buy only building insurance, so Building only Insurance. In its basic version, it applies only to its walls and other fixed elements such as roof, windows, doors, walls, installations, etc. Optionally, additional parts of the property, such as outbuildings, garage, fencing or swimming pool can also be covered by the policy.

This type of home insurance provides compensation to cover the cost of repairing or rebuilding a building if it is damaged by:

  • fire,
  • earthquakes,
  • flooding or inundation,
  • landslide,
  • a fallen tree or broken branch,
  • vandalism,
  • theft,
  • other disaster or fortuitous event.

Depending on the offer, such a policy may provide for various exclusions, i. e. cases in which you will not receive compensation. For example, if the damage occurs while the owners have been away for more than 30 days. Also, not all insurance covers all expenses related to the repair of damage and you should pay extra for additional coverage.

Home contents insurance – Contents only Insurance

The second type of home insurance relates to movables, which are items located in the building that are not permanently attached to it. In practice, this means mainly furniture, free-standing household appliances, clothes and jewelry.

In the basic version, such a policy provides protection only in case of damage caused by fortuitous events (e. g. flood, inundation or fire) or theft, which occurred in the house. However, for an additional fee, you can also extend the coverage to situations when they are lost or damaged outside your home (e. g. when your laptop is stolen in public transport).

Contents only Insurance Policy may also provide for compensation to be paid in other cases e. g:

  • damage caused by pets,
  • destruction or theft of plants and garden furniture,
  • the need to replace the locks on the front doors.

It should be remembered that the greatest difficulty in purchasing this type of policy is determining the sum insured, i. e. estimating the value of items to be protected. You can use ready-made calculators, but you should also be aware that many insurers set upper limits for the value of individual items of property, which means that the policy may not cover all the actual damage. Full reimbursement is provided by “an unlimited insurance” policy.

UK Insurance

What are the types of policies and what do they cover?

When choosing insurance for your home and especially your belongings, there are two varieties of policies to look out for:

  • New-for-old: as the name suggests, this policy covers the full cost of replacing a damaged or stolen item with a new one,
  • Wear and tear: in this case the compensation also covers the costs of repair or replacement of the object, however, taking into account the degree of wear and tear.

Wear and tear insurance is less expensive than New-for-old, but may not cover the full amount needed to repair the damage.

Buy insurance and sleep soundly!

As you can see, choosing home insurance in the UK is not easy, because it involves the necessity to compare the terms and conditions of many insurers and above all reading into the detailed rules of compensation. That’s why, if you’re planning to buy your first property in England and need a good policy, you should use the help of our advisors who will find you an offer perfectly suited to your needs and financial possibilities.


Małgorzata Kniaź - Supreme Financial Solutions LTD

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