Complete guide to home insurance in the UK: protect your property and finances

Understand what home insurance is, how it works, what it covers, and explore the best policy options in the UK.

Por: Bruna Silveira em 13 de September de 2024 Última atualização em: 9 de December de 2024

It is not easy to build a home. If you own a house to pay a mortgage, or even pay rent, you are still working hard to get it going.

You keep updating your home by replacing old things, renovating the fixtures upgrading gadgets, etc.

But sometimes, all of this can be ruined in a few minutes of bad luck. It could be a burglary, fire, or destruction by a natural disaster. How to cope with a situation like this?

What is home insurance?

Home insurance is your protection from going bankrupt in case of any harm done to your home.

Home insurance pays you to rebuild or replace the items that are stolen in burglary, or are destroyed by storm, flood, or fire.

What does home insurance cover?

Home insurance can vary from company to company and based on the type of coverage you choose.

But here’s what’s usually covered by the home insurance:
Robbery
Fire
Storm
Loss due to any other reason
But home insurance has the flexibility to be tailored according to your needs. Here’s what you can add to your insurance along with the basic cover:
Emergency repairs
Loss of items from outside the house
Accidental damage to goods
Valuable items

Point to ponder: You must know that no policy will cover the cost of items broken intentionally or during cleaning, etc.

How much is home insurance?

The rates of insurance policies are never the same. Just like any other insurance, home insurance costs can also vary based on the provider, type of coverage what’s included, etc.

But the costs of home insurance keep rising in the UK.

The average annual premiums are almost £400 now and they may rise again, so the sooner you get your insurance for a secure future, the better. You can save £100s by taking one on time.

What are the best home insurance companies?

It can be hard to find the cheapest yet most reliable home insurance policy that is tailored according to your budget and needs.

But we are here to help you. Here’s the list of top 7 home insurance companies where you can get your quote to find the one that best suits you:

1- StateFarm

If you want a home insurance company with the best perks, then StateFarm is highly recommended.

Upsides:

The standard coverage of StateFarm includes extended replacement cost coverage which costs as extras by most insurance companies.
Freebies to keep your home safe
Offers extra coverage according to your home structure
User-friendly website

Downsides:

May not offer as many discounts as other companies

2- Country Financial:

Country Official is another one of the most famous and well-reputed home insurance companies in the UK.

They offer several options, insurance tailored around the needs of clients, so they don’t have to go anywhere else.

Upsides:

Best for those who prefer speaking directly to the local representative.
Customer satisfaction at its best due to personal relationships
All the mishaps are also covered, such as countertop burns, or damage done due to spilled paint
Guaranteed replacement cost coverage
You are covered for the new standard cost of new construction material in case of rebuilding the house, without any cost limits

Downsides:

Not available in all states

3- Amica:

Amica is one of the top-rated home insurance companies with the highest level of customer satisfaction.

Upsides:

They offer great packages and report fewer complaints than other insurance companies. Another perk of taking the Amica policy is the easy online claim filing facility.
If you want more from the Amica home insurance policy then it is recommended to take the platinum plan as it will offer higher liability coverage and damage done due to blocked drains etc.

Downsides:

One drawback is that it’s not available in Alaska or Hawaii.
Another one is that you may not be able to finish the quote you started online.

4- Erie:

Another one of the well-reputed home insurance companies with the most generous coverage options is Erie.

Upsides:

Cheaper than most home insurance companies
Guaranteed replacement cost coverage

Downsides:

Not available in most states

5- Chubb:

As for the huge company it is, it has a lot fewer customer complaints than many insurers, which guarantees its good reputation and gestures.

Upsides:

The numerous benefits of being attached to Chubb include:

Multiple discounts offered by the company
Their standard coverage includes the options most insurers allow to add as extras
Personal liability covers up to $100 million which is the highest among most lenders
HomeScan service that helps uncover the attention-seeking matters of the home that may cause damage.
Extended replacement cost coverage offers to cover the cost that exceeds the expected cost in case of damage done due to natural disasters

Downsides:

Most customers aren’t able to get their quote online and instead need to go to the local agent.

6- USAA:

One of the top-ranked home insurance companies in the UK. This company is designated for military members and veterans, so they can fully benefit from all their perks.

Upsides:

Offers multiple options in standard coverage that costs extra at most home insurance companies.
Covers military uniforms as well
Lower average rates than the national average cost

Downsides:

Only available for military and their families

7- Andover companies

Andover companies receive fewer customer complaints, making them more reliable than many other travel insurers.

Upsides:

There are multiple coverage options to choose from.
They offer higher liability coverage and more options for a customized policy than many other insurers out there.
They offer numerous comprehensive coverage options which is their specialty.

Downsides:

The only downside to Andover company’s home insurance is that it is not available in most states.

Tips to get cheap home insurance

There are chances that you do not find any significant differences in the prices of home insurance from different insurers in the UK, but you should compare rates if you want to get insurance.

And if you already have one, try getting a quote from somewhere else before you renew your insurance.

Here are a few tips that might help you save some money on your home insurance policy:

It might be hard but better to pay your premiums annually, monthly payments can cost more.
Improving your home security is a good call, such as:
BSI-approved outdoor locks for doors and windows
Fire alarm, burglar alarm, etc
Increase your excess, if you can

How to cancel home insurance:

If you want to cancel the insurance, you can seek help from your insurers, it can be done anytime.

But to avoid any consequences, here’s what you should know:

You will need to have your buildings covered in place in case you have a mortgage
If you cancel during the policy, you will lose your no-claim bonus, and you will be charged a cancellation fee
If you have already paid your annual premiums, then you will be refunded for the rest of the months.

Final words

Home insurance policies are recommended for all UK residents because not everybody has the budget to do repairs and replacements all the time.

It might feel like a hefty investment at first, but it can benefit you a lot in the long run. All you need to do is find the right one tailored to your needs, home structure, and budget.

You will hopefully be able to get a suitable quote from one of the top-rated home insurance companies in the UK mentioned above.

Don’t forget to compare the rates before you choose one.

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