Two million reasons why you might want to think about home insurance

Categories: Information

According to a piece of research by the BBC in March 2012, some 2 million Britons have no type of home insurance. There is a very good reason why you probably don’t want to count yourself among that 2 million – you might stand to lose everything you own and left, quite literally, with only the clothes on your back!

It doesn’t even take a lot of imagination to picture the just how this might happen – a fire, for example, runs uncontrolled through your home, destroying not only the building but everything within it. Without any insurance, you could easily be left with no home and no possessions – and no funds at all with which to replace them.

Compared to the potential for such catastrophic loss, home insurance might in fact be considered quite cheap. It typically comes in two parts – buildings insurance and contents insurance – which can be bought separately, but typically works out to be more reasonably priced if you buy both types of cover together.

Building insurance

Just as the name suggests, this is the cover that protects loss or damage to the structure and fabric of your home, generally from such major risks as fire, flooding, storm damage, subsidence, impacts from falling objects, and vandalism.

In fact, if you needed to raise a mortgage in order to buy your home, adequate building insurance is likely to be a firm requirement by your lender. The lender’s collateral for the substantial sum of money being advanced to you, of course, is the property itself – so the lender is going to insist on its being properly insured.

When it comes to the total sum to insure the building, remember that this should be sufficient to completely rebuild the property in the event of a catastrophic event. Remember, too, that rebuilding costs are unlikely to be the same as the price you paid to buy your home.

Contents insurance

This self-explanatory type of cover naturally protects the contents of your home. It can appear a daunting and time-consuming business to create an inventory of everything you own – but it is nonetheless worth it since you could seriously lose out on any claim if you have been under-insured.

It is worth checking whether you are covered for accidental damage to your contents and whether repair or replacement is on a “wear and tear” or “new for old” basis.


I am a Son, a Father,a Husband and i love property of all type, i am building this site to help other avoid the pitfalls i had. In the little spare time that i do have i am trying to learn to fly model helicopters.

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