Our Pick Of The Best Home Insurance Policies
Home insurance costs are rising because of an increase in weather-related damage claims and shortages of materials used in repairs.
Prices were up by 34% in June 2024, compared to the same period in 2023, according to Pearson Ham Group’s latest Premium Price Index. Its research puts the average home insurance premium at almost £425.
Yet home insurance is crucial for protecting what, for most of us, is the biggest investment of our lives. It means ensuring you’ll never have to foot a bill for catastrophic events such as fire, flooding, subsidence or burglary. Shopping around for a cheaper provider could be the best place to start.
- Why you can trust Forbes Advisor's ratings
- Our pick of the best home cover for 2024
- CTA
- Methodology
- Bring home the right buildings and contents cover
- What is contents insurance?
- Home insurance premiums across the UK
- Cover for high-value items
- What does contents insurance exclude?
- Can I add any extras to contents insurance?
- New-for-old vs indemnity cover
- How much do I insure my belongings for?
- What does buildings insurance cover?
- What does buildings insurance exclude?
- Who needs buildings insurance?
- Are there any additional cover options with buildings insurance?
- How much buildings insurance do I need?
- How can I save money on contents and buildings insurance?
Our pick of the best home cover for 2024
We’ve conducted some research to rank what we consider to be the best home insurance providers. For more detail on how we arrived at our rankings, refer to the methodology, below.
Property 1 is a four-bedroom, detached house in Kilmarnock, East Ayrshire with four bathrooms and a rebuild value of £437,000.
Property 2 is a three-bed semi-detached house in Peterborough, Cambridgeshire with one bathroom and a rebuild value of £244,000.
Property 3 is a two-bed terrace in Yeovil, Somerset with one bathroom and a rebuild value of £197,000.
Methodology
We used the Forbes Advisor UK home insurance comparison to run a series of quotes for different types of properties: a detached home in Scotland, a semi-detached house in Cambridgeshire and a terraced house in Somerset.
For each quote we asked for £35,000 worth of contents cover and the appropriate level of buildings cover based on the Association of British Insurers’ (ABI) rebuild value calculator. We chose for the cover to begin on 1 May 2024, to pay premiums annually (monthly premiums are also shown), and opted for a voluntary excess of £250.
Here is how each of the three quote profiles looked:
Property 1: A 4-bed detached house in Kilmarnock, East Ayrshire with 4 bathrooms and a £437,000 rebuild value. The property is occupied day and night and secured with a 5 Lever Mortice Deadlock Conforming to BS 3621. The property has one set of patio doors and is occupied by a married, 47-year-old headteacher of a state school (non-smoker) with nine years’ no claims discount.
Property 2: A 3-bed semi-detached house in Peterborough, Cambridgeshire with onebathroom and a £244,000 rebuild value. The property is unoccupied by day and secured with 5 Lever Mortice Deadlock Conforming to BS 3621. The policyholder is a graphic designer who smokes and has five years’ no claims discount.
Property 3: A 2-bed terrace in Yeovil, Somerset with one bathroom and a rebuild value of £197,000. The property is unoccupied by day and secured with a 5 Lever Mortice Deadlock Conforming to BS 3621. The policyholder is a 59-year-old mechanic (non-smoker) with seven years’ no claims discount.
We ranked policies from cheapest to most expensive when paid monthly and, taking into account each policy’s features, assigned each a star rating out of a possible five stars.
Bring home the right buildings and contents cover
There are two types of home insurance. Contents insurance is for your possessions – that’s anything that isn’t fixed into the fabric of your property. Buildings insurance – you’ve guessed it – is for the structure itself, plus fixtures and fittings such as kitchen and bathroom units.
One of the reasons these covers are sold separately is that not everyone needs both. For example, if you’re renting, your landlord should take care of the buildings insurance.
If you need both, you can buy contents and buildings insurance from different companies, but you may find it more straightforward and possibly cheaper to buy a ‘combined’ policy from the same firm.
What is contents insurance?
Contents insurance provides cover for everything you would normally take with you if you moved home. Cover can vary depending on the policy, but will generally include:
- furniture – such as sofas, beds and wardrobes
- electricals – such as TVs, laptops and games consoles
- kitchen appliances – such as fridges, washing machines and dishwashers
- soft furnishings – such as carpets and curtains
- kitchenware – such as pots, pans and crockery
- clothing, jewellery and money
- books, DVDs, toys and video games.
Cover may also include the contents of your shed, garage or other outbuildings. Some policies will even cover the cost of replacing spoiled food if your freezer breaks down or there is a power cut that is beyond your control.
Cover for high-value items
When comparing contents insurance policies, you’ll need to look out for the ‘single item limit’. This is the maximum amount your insurer will pay out for any one item.
The single item limit will vary depending on the insurer but will typically sit around £1,500 to £2,000. Any items worth more than this, such as bikes, jewellery or laptops, must be listed separately on your policy if you wish to have them insured.
What does contents insurance exclude?
As with all types of insurance, it’s important to check the terms and conditions of your policy so that you’re aware of any exclusions. In most cases you won’t be covered for:
- wear and tear-related damage
- damage caused by pets
- misplaced or lost possessions
- faulty workmanship
- mechanical or electrical breakdown
- theft through unforced entry, for example if you left a window or door unlocked.
Some policies include accidental damage cover as standard. This would pay out for accidents such as spilling paint on your carpet.
Cover for bikes can be more limited, too. Many insurers will only cover bikes that are locked away in your garage or shed or kept in your home. And, again, if your bike is of high value you may need to list it separately or take out additional cover.
Can I add any extras to contents insurance?
When comparing contents insurance policies, you can typically pay a little extra to bolt on any of the following to your policy:
- accidental damage cover: protecting you for accidents such as smashing your TV screen or spilling wine on your sofa
- home emergency cover: providing cover for emergencies such as a burst water pipe or boiler breakdown
- legal cover: covering the cost of legal proceedings if you need to dispute a claim
- personal possessions cover: covering portable items, such as your phone, tablet or laptop, while you’re away from home (restrictions may apply, such as no cover for damage by liquid).
New-for-old vs indemnity cover
When taking out contents insurance you may be able to choose between new-for-old cover and indemnity cover.
New-for-old cover will replace any stolen or damaged belongings with brand-new items of equivalent value. Indemnity cover, on the other hand, will take into account the wear and tear of any items you claim for.
This is often the cheaper option but will only cover you for the current value of your possessions.
How much do I insure my belongings for?
Estimating the value of all your household possessions isn’t the easiest of tasks. Overestimate and you could end up paying more for your premiums than you need to. Underestimate and you could end up underinsured, resulting in your insurer only paying out a percentage of any claim you make.
But the best way to calculate the value of your belongings is also the simplest. Go through each room of your home and make a list of all your possessions. Calculate how much each possession is worth and then add up the total. This will be the amount of cover you require. However, there are plenty of online calculators to help you.
Regular valuations of high-value items such as jewellery will also help to ensure your estimate remains as accurate as possible. This is also worth doing at key points of the year, Christmas being the most obvious example.
What does buildings insurance cover?
Buildings insurance will typically cover your property’s roof, floors, windows, doors and walls, as well as permanent fixtures and fittings such as built-in wardrobes, kitchens and bathrooms.
Outside constructions such as garages, pipes, patios, drains, swimming pools and ponds may also be covered as standard or may need to be specified, depending on the policy.
Buildings insurance will usually cover you for loss and damage caused by:
- subsidence and heave
- fire, flooding, storms and earthquakes
- frozen and burst pipes
- fallen trees, lampposts, aerials or satellite dishes
- theft, attempted theft and vandalism
- vehicle or aircraft collisions.
What does buildings insurance exclude?
When comparing buildings insurance, be sure to check what’s not covered. Policies will typically exclude:
- wear and tear, including corrosion and rust
- wet rot, dry rot or frost damage
- storm damage to fences and gates
- damage caused by insects, birds, vermin and other pests
- poor workmanship.
Most policies will only provide cover on the condition your home is not left unoccupied for more than 30 consecutive days at a stretch. If your home will be left empty for longer than this, let your insurer know as soon as possible to discuss options.
If you are in an area prone to subsidence, your buildings cover is likely to be relatively expensive and you are likely to face a steep excess (the amount deducted from any claims payment you receive) on subsidence-related claims.
A buildings insurance excess might typically be pegged at £200, but for a property at risk of subsidence it could be £1,000 or even £5,000, especially if a subsidence claim has been made in the past.
Who needs buildings insurance?
Whether or not you need buildings insurance will partly depend on whether you own or rent your property.
If you’re buying a house, your mortgage provider will usually require you to buy buildings insurance as a condition of the mortgage. That said, you are not obliged to buy the policy it offers you – you are free to shop around.
If you own a home without a mortgage, it will be up to you to decide whether you need buildings cover, but it is strongly recommended that you have cover in place.
Requirements are slightly different if you own a leasehold flat. In this situation, the owner of the freehold should arrange buildings insurance for you. If you own the freehold or a share of it, however, you’ll need to arrange your own cover.
Finally, if you rent your home, it’s usually the landlord’s responsibility to arrange buildings insurance. But always check to be sure.
Are there any additional cover options with buildings insurance?
For more comprehensive buildings insurance, you can choose to bolt on a range of cover options for an additional charge. These can include:
- accidental damage cover: protecting you against costly accidents such as smashing a window
- legal expenses cover: covering personal legal expenses
- loss or theft of keys cover: covering costs associated with replacing keys and locks in your home
- home emergency cover: protecting you against emergencies such as a burst water pipe or faulty electrics
- alternative accommodation: covering the cost of staying elsewhere while your home is being repaired.
How much buildings insurance do I need?
When buying buildings insurance you’ll need to calculate the ‘rebuild’ cost of your home – how much it would cost to replace if it were completely destroyed.
This is known as the ‘sum insured’. In parts of the country where property prices are high, the rebuild cost may be lower than your home’s sale price or market value. And the opposite may be true where property prices are relatively low.
The rebuild cost should include the price of labour and materials, as well as any professional fees associated with rebuilding and the cost of clearing the site.
It’s important to be as accurate as possible when calculating the rebuild cost to make sure you’re not over or underinsured. The most accurate way to do this is to get your home surveyed by a professional. This is particularly important if you live in a listed building as its rebuild cost may actually be higher than its market value.
Alternatively, you can use the Building Cost Information Service’s house rebuilding cost calculator.
Some insurance companies may suggest an amount to you based on their accumulated knowledge of the properties in your area and the details you provide. But it’s always worth checking yourself.
How can I save money on contents and buildings insurance?
- Shop around
First, and most importantly, always shop around and compare cover options carefully. Running several different quotes will help you to find the right level of cover at the most competitive price. Do this each time your home insurance is up for renewal to ensure you continue to pay the best possible price - Combine buildings insurance and contents insurance
If you’re buying both buildings and contents insurance, it’s generally cheaper to combine them under the one policy rather than take out separate cover - Pay annually, not monthly
Paying for your insurance upfront each year will be cheaper than paying in monthly instalments when interest is often added. If you can’t afford to pay in one go, consider using a 0% purchase credit card to spread the cost over several months interest-free (don’t spread the cost beyond 12 months as you may end up paying for two policies at once – the old and the new) - Consider optional extras carefully
When comparing insurance policies, only select the optional extras you’re likely to need - Increase the voluntary excess
An easy way to reduce your premiums is to increase your voluntary excess. This is the amount you’ll need to pay if you make a claim and the higher it is, the lower your premiums will be. Just make sure it’s still affordable - Build up your no claims discount
Many home insurance providers will offer a discount to those who have not made a claim on their insurance for a number of years. The longer you go without claiming, the more you’ll save - Improve your home’s security
Installing the correct locks on your doors and windows, joining a Neighbourhood Watch scheme, and fitting a burglar alarm can all help to lower premiums.
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