Home insurance: what it covers and what to compare

Cover for the building and for what is inside, what is usually left out, and how to compare policies.

Two things that can be covered

Cover for the building protects the structure: walls, roof, fixed fittings. Cover for the contents protects what you own inside it: furniture, appliances, belongings. Some policies offer one, some both. An owner living in a flat in a society should check what the society's own policy already covers.

What is commonly covered

• Fire, lightning and explosion.
• Flood, storm and other natural events, in many policies.
• Burglary and theft of contents.
• Damage from bursting pipes.

What to compare

• What is excluded, which matters more than what is included.
• The amount covered, and whether it is what it would cost to rebuild or replace, or less.
• The excess: the part of each claim you pay yourself.
• How a claim is made, what proof is wanted, and how long it usually takes.

If you have a loan

A lender may ask for cover on the building until the loan is repaid. Ask the lender what they require, so that what you buy meets it.

This guide is general information, not legal, tax or financial advice. Rules differ between states and change over time, so confirm the details that matter to you with a qualified professional or the authority concerned before you act.