It is estimated according to recent reports that less than 50% of home owners in the UK have reviewed their current home insurance policy yearly to see if they are fully covered. As homes accumulate wealth over time, it makes sense to at least check with your current provider that you are still covered as there is a real risk of being underinsured when it comes to contents insurance.

What is home insurance?

Home insurance is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

What does home insurance normally cover?

A typical home insurance policy will cover fire and theft, storm, floods, water damage and vandalism. Each policy is different though, and it makes sense to check the small print – particularly for phrases such as “acts of God” – the typical get out of jail free clause that some home insurers use to void a policy.

The average policy will cover valuables (up to a certain value), cash (up to a certain value), furniture, electronics, carpet and in some cases clothing.

What else does it cover?

Some policies will cover the cost of accommodation, should your property fall victim to fire or flood. They may also cover expensive individual items up to a certain cost.  Student home insurance will typically cover the contents of a dorm or room when they are out of the room, it is worth talking out a specialised student policy, as these will typically be cheaper than ordinary home insurance, and avoid the hassle of claiming on the main policy if the worst comes to the worst.

Do I need additional cover?

Some antiques or artwork may not be covered by default, and may warrant individual cover. If you have a large collection of something specific (like DVDs or stamps) or expensive home entertainment equipment, such as computers, widescreen TVs and games consoles, you should also consider listing these as individual items on your policy or insuring them separately.

How to find the best home insurance policy for you?

There are a whole host of deals out there on the web, with prices becoming more and more competitive all the time.  There are a few ways in which you can save money with your existing policy, including searching online for a policy and not claiming on minor issues. Some insurers offer a discount for payment upfront, rather than paying via direct debit.

Overall home insurance cover is a very tailored product, and your needs will be customised according to what is in your home, however the online market is a buyers market, and many a deal is there for the taking.