Home insurance

Home insurance is a way to financially protect yourself from the cost if something were to go wrong with your home, or the things you have in it.

Home insurance can include buildings cover and/or contents cover.

Buildings insurance covers the cost of repairing or rebuilding your home if it’s damaged for example, by storm, floods, fire, lightning or subsidence – but it won’t cover you for general wear and tear.

Contents insurance covers your possessions in case they’re damaged, stolen or lost. For example, if there was a fire, flood or burglary at your home, it would cover the cost of replacing your belongings.

No, it’s not a legal requirement to have home insurance when you're renting. But, it can help protect your possessions in case they’re lost, stolen or damaged.

Voluntary excess is an optional amount you can pay towards an insurance claim – on top of the compulsory excess. For example, if your policy has a compulsory excess of £150 and you add a voluntary excess of £100, you’ll need to pay £250 if you make a claim.

Increasing the voluntary excess on your insurance can be worthwhile because it can lower the cost of your insurance premium – the amount of money you pay for an insurance policy. This is because the insurer won’t have to pay out as much in the event of a claim. 

But, you need to weigh up the pros and cons to help you decide if it’s the right option for you. You should consider your total insurance excess and make sure it’s at a level you feel comfortable paying, in case you ever need to make a claim.