I’m a first-time buyer; what kind of home insurance cover do I need?

It’s an awesome feeling getting the keys to your first home.

No. 3165 from our magazine|2 min read| Published in Magazine on 6 March 2023 by our Marketing Team

Before you take the final few steps across the threshold to your front door, you should, prior to collecting the keys, take out a home insurance policy. In fact, you should have your home insurance in place as soon as you exchange contracts!

Buildings insurance

Your mortgage provider will most likely insist, as part of their terms, that you take out buildings insurance. It’s not a legal requirement and is calculated on the re-build value of your home, which even for a modest terraced house can run into millions. It’s probably best to get it!

What does buildings insurance cover?

This is very different from contents insurance and covers structural damage to your property from theft, flooding, fire, storms, and burst pipes.

Contents insurance

This type of insurance covers you against the cost of replacing or repairing your home’s contents if they are stolen, destroyed, or damaged.

Furniture, appliances, paintings, jewellery, household belongings, and almost anything else you want to insure is covered under contents insurance. You will be asked to calculate an estimated value for these items. Remember, every insurance company differs, and it’s important to answer all questions accurately.

Certain items might not be insured unless you inform your insurance company. For example, a bike that you store in the shed or at home will not automatically be covered under your contents insurance policy.

The cost

This will largely depend on the value, location and contents of your property.

Some useful extras:

Accidental damage –

Cover yourself against a coffee spill on your new carpet or a broken tile.

Legal expenses –

This protects you against unforeseen legal expenses, such as a dispute with your neighbours over garden fence boundaries, should you hire a solicitor or, worse, end up in court!

Personal possessions –

This can cover personal items you may remove from the house, like a camera.

Emergency cover –

This can cover you against labour costs should you need emergency repairs due to plumbing or electrical issues.

Some wise moves:

Life insurance –

Even if you have no dependents, purchasing a life insurance policy could pay off your mortgage if you die. Your home could then be left to a member of your family in your will.

Critical illness cover –

If you suffer a serious illness, then the remaining balance of your mortgage could be paid, giving you real security at such a time.

Income protection –

If you become ill and are unable to work, this will provide you with an income. It’s worth noting that this is not subject to tax.

Final thoughts

Making those first steps on the property ladder is not easy, but now that you have finally made it, the last thing you need is to fall from the ladder without a good safety net in place. Insurance is more than just a safety net; it may keep your feet securely on that ladder.

Not sure what kind of home insurance you need? Or are you looking for a more competitive quote? Browse our website   