A guide to Home Insurance in the UK

Getting the basics right

Home insurance protects the structure of your home, your belongings, or both. Buildings insurance covers the fabric of the property such as walls, roof and fixtures. Contents insurance protects what you would typically take with you if you moved. A combined policy bundles both and is usually the simplest route for homeowners.

In 2025, typical combined premiums generally fall between about £274 and £391 depending on the source and quarter. Prices have climbed in recent years due to higher claims costs, repair inflation and severe weather. Some areas pay more than others. London and the South East often see higher averages, while parts of the North West and North East can be cheaper. Competition in early 2025 did bring some easing, but overall costs remain elevated. That makes comparing quotes and checking cover limits more important than ever.

The biggest risk we see is not price alone but underinsurance. Many UK homes are insured for less than the true rebuild cost, which can leave families facing large shortfalls after a major loss. This guide explains what policies cover, how claims work, and the practical steps to set the right sums insured. We will also highlight where optional extras help, and where they might be unnecessary for your situation.

Insurance can offer real financial protection, but only when you understand exactly what is and is not covered. We will walk through the essentials in plain English so you can make confident decisions without surprises at claim time.

What is covered and how it typically works

A standard buildings policy covers the permanent structure of your home against risks such as fire, storm, flood, escape of water, subsidence, and theft-related damage. Contents policies cover personal belongings against similar perils, usually on a new-for-old basis, up to the limits set in your policy schedule.

Common exclusions include wear and tear, gradual deterioration, poor maintenance, and deliberate damage. High-value items like jewellery or art may have single item limits unless you specify them. Flood cover can be restricted or priced higher in certain postcodes. Subsidence often carries a higher excess and stricter terms.

If you need to claim, you contact your insurer as soon as possible, explain what happened, and provide evidence like photos, receipts and invoices. For buildings claims, an assessor or contractor may inspect damage and arrange repairs. For contents claims, insurers may replace items, pay cash, or use approved suppliers. Temporary accommodation can be included when your home is uninhabitable, subject to policy limits.

Example: A burst pipe damages ceilings and carpets. Buildings insurance would address the pipe repair and structural damage, while contents insurance would cover ruined furniture and personal items. If the home is unfit to live in, alternative accommodation could be provided within the stated limit.

The golden rule is to set your buildings sum insured at the full rebuild cost, not the market value, and to maintain an accurate contents total based on what it would cost to replace items today.

Who genuinely benefits

Home insurance is essential for UK homeowners with a mortgage, as lenders usually require buildings cover. It is also prudent for outright owners who want protection against severe losses like fire or flood that could otherwise be financially devastating. Combined cover suits most owner-occupiers who need both buildings and contents protection in one policy.

Contents-only cover is suitable for renters who do not own the building. Landlords generally need specialist landlord insurance that includes buildings, liability and loss of rent options. Those in low-risk, modern homes may find premiums reduced due to construction standards and improved security.

It may be unnecessary to buy contents cover for an unoccupied property with no belongings, though unoccupied home insurance could be required for the building. If you have significant savings to self-fund small losses but not catastrophic ones, consider a higher voluntary excess to control premium while retaining protection for major events.

Picking a level that fits your needs

1. Basic cover

   • Buildings: Core perils like fire, storm, escape of water. Lower limits for alternative accommodation. Higher standard excess. Limited accidental damage.
   • Contents: Standard perils with lower overall and single item limits. May exclude away-from-home cover. Suitable for budget needs and lower risk homes.

2. Standard cover

   • Buildings: Wider perils, often includes trace and access for leaks. Mid-range excess. More generous alternative accommodation limits.
   • Contents: Better single item limits and accidental damage for selected items. Some personal possessions cover can be included or added cheaply.

3. Premium cover

   • Buildings: Extended accidental damage, higher limits, more flexible terms for listed or high-value properties, and stronger alternative accommodation limits.
   • Contents: Higher overall limits, specified items cover for jewellery, tech and bikes, and worldwide personal possessions.

4. Common optional add-ons

   • Accidental damage upgrade for buildings and contents to cover events like drilling into a pipe or spilling paint on carpets.
   • Personal possessions away from home for items like phones, laptops and jewellery while outside the home.
   • Home emergency for urgent issues such as boiler breakdowns or lost keys, usually with a 24-hour helpline and claim limits.
   • Legal expenses for disputes relating to property or employment, up to a specified limit.
   • Flood or subsidence enhancements where risk is higher, sometimes with specialist schemes.

Tip: Check single article limits and specify valuable items to avoid shortfalls at claim time.

Cost, pricing and what shapes your premium

Prices vary by insurer and postcode. Always compare like-for-like cover, excesses and limits.

Eligibility and what insurers may ask for

You can usually apply if you own or rent a UK property and live there as your main home. Insurers ask for accurate details about the property, including the year built, construction type, number of bedrooms, security features and any history of subsidence, flooding or previous claims. They will also ask about your contents value and any high-value items.

Restrictions can apply to listed buildings, thatched roofs, properties undergoing major works, or homes left unoccupied for extended periods. Flood or subsidence risk postcodes may face higher excesses, exclusions or require specialist schemes. Common reasons for decline include inaccurate disclosure, unresolved subsidence, significant ongoing structural issues, or a history of frequent claims.

Keep documents like surveys, past claims information, and receipts for valuable items. If you are unsure about a question, ask the insurer for clarification before you buy so you can disclose accurately and avoid problems later.

From quote to claim in simple steps

1. Gather key details: address, construction, security, claims history, rebuild estimate.
2. Get multiple quotes for combined vs separate buildings and contents cover.
3. Check limits, single item caps, exclusions and compulsory excess amounts.
4. Adjust sums insured to accurate rebuild and contents replacement values.
5. Add only essential optional extras that match your real risks.
6. Buy the policy and store documents, schedules and emergency numbers securely.
7. Review annually at renewal and negotiate or switch if terms worsen.
8. If a loss occurs, report promptly with photos, receipts and repair estimates.

The trade-offs to weigh carefully

Aim for accurate sums insured. It is the single best defence against claim shortfalls.

Key checks before you commit

Before buying, read the policy wording and the schedule together. Confirm the buildings sum insured reflects a true rebuild cost, not the market value. Review contents totals and single item limits for jewellery, bikes and tech. Check all exclusions, compulsory and voluntary excesses, and any waiting periods. Note limits for alternative accommodation, trace and access, and valuables away from home. Ensure flood and subsidence terms suit your postcode risk. At renewal, expect potential changes to price and terms. Keep receipts, valuations and photos for high-value items to support any future claim.

Alternatives and related protection

1. Contents-only insurance - Suitable for renters who do not need buildings cover.
2. Landlord insurance - For let properties, typically includes buildings, liability and loss of rent.
3. High net worth home insurance - For higher rebuild values or extensive valuables needing bespoke limits.
4. Flood-specific schemes - Useful in higher risk postcodes where standard cover is restricted or costly.
5. Home emergency cover - For urgent call-outs. Often an add-on but can be standalone.

FAQs

Q: Why are premiums higher in 2025? A: Claims costs, severe weather and repair inflation have pushed prices up. Some competition returned early in the year, but overall pressures remain. Comparing like-for-like cover is the safest way to control costs.

Q: How do I avoid underinsurance? A: Use a reliable rebuild calculator or professional assessment for buildings, and list contents by replacement value today. Update sums insured at renewal and whenever you make improvements or major purchases.

Q: Is combined cover always cheaper? A: Often, but not always. Combined can be cost effective and simpler to manage. Still compare against standalone buildings and contents quotes to see what suits your situation and budget.

Q: Will claims for small losses raise my premium? A: They can. Consider whether it is worth claiming for minor damage after your excess. Protecting your no-claims record can lower costs over time, but do not skip claiming for significant losses.

Q: Do I need accidental damage cover? A: It covers sudden, one-off mishaps like drilling into a pipe or spilling paint on a carpet. Useful if you have children, pets or frequent DIY. Optional and adds to the premium.

Q: How do regional differences affect price? A: Areas with higher property values, burglary rates or flood risk tend to pay more. Conversely, regions with lower risk profiles may pay less. Your exact postcode and property details drive the final price.

What to do next

Take a moment to note your rebuild cost, contents total and any high-value items. Compare several quotes on a like-for-like basis, focusing on limits, excesses and exclusions rather than headline price. Adjust optional extras to fit your real risks. If your renewal rises, negotiate politely or switch to a fairer deal. You stay in control.

Important information

This guide is general information, not personal financial advice. Policy features, limits and exclusions vary by insurer. Always read the policy wording and schedule carefully, check sums insured, and ask questions before you buy so the cover matches your needs.