Types

Home insurance is designed to give you peace of mind, knowing that the roof over your head and your belongings are fully protected against damage, theft or loss should anything go wrong.

For the vast majority of us, our homes are the biggest and most important investments of our lives, which is why it's essential to have adequate protection.

Home Insurance consists of two types of cover (though most homeowners buy them together):

• Buildings Insurance – insurance policies which cover the structure, fixtures and fittings of a property, and which will pay to have the structure repaired or your home rebuilt if necessary.
• Contents Insurance – policies which protect all your household possessions.  

Your mortgage company requires you to have buildings insurance – which will cover the cost of rebuilding your home – but it is up to you to make sure you buy cover each year. Otherwise you could find yourself with no home to live in, no funds to rebuild it and a mortgage that still needs paying. Not having contents insurance doesn't have such dire consequences but most households choose to protect their belongings as the cost of replacing them if they were stolen, lost or damaged can be enormous.

There are also three other types of home insurance that cover different and special needs.

They are:

• Landlords Insurance - which also provides protection against rogue tenants and non-payment of rent;
• Holiday Home Insurance - which provides for properties which may be left empty for long periods and can be damaged by short-term tenants. There are also special policies for those with holiday homes overseas; and
• Student Home Insurance - which brings extra security problems.