Why do you need Home Insurance?
Chances are your home will be the most expensive purchase you ever make. Not only that, it's also full of your most cherished possessions which is why different people need different types of home insurance. More...
If you're a home owner or a first-time buyer you may already be aware that for many mortgage providers, buildings insurance is a condition of the mortgage.
If you're a home owner and live in the property, you may want to purchase both buildings and contents cover as you're responsible for anything that happens to either your home or its contents.
Renters only need to look at contents cover as the property's landlord is responsible for the structural maintenance. However, you should always check the terms of your rental agreement to be sure.
The difference between buildings and contents cover
Buildings insurance covers the structure of your home and most things fixed down, while contents insurance covers your possessions - basically, the things you'd take with you if you move.
This covers the actual bricks and mortar of your home, if your walls, roof, ceiling, fitted kitchen and any other structural items were damaged, you would claim on this policy. Fire, water and malicious damage are all covered by Admiral Buildings Insurance.
It's important you calculate the rebuild cost rather than the estimated value of your home. Be sure to give an accurate valuation as over-estimating could leave you paying higher premiums, while under-estimating could result in you receiving a lower payout if you were to claim. This guide from the Association of British Insurers can help you work it out.
This covers everything inside your house, things like your furniture and clothes are covered with Admiral.
It covers items in your home if they are damaged, lost or stolen up to £150,000 depending on the level of cover you choose. Just like with buildings cover you will need to estimate the value of the items you'd like covered in your home.
You will need to tell us about any high risk items you or your family own which have a value of £1,000 or higher. For example this includes computers, laptops, audio visual equipment and jewellery. Read more about contents insurance.