Home insurance protects your biggest asset — but most people overpay by hundreds of pounds a year simply by auto-renewing. This guide covers what's covered, average costs by property type, and exactly how to save £300+ without reducing your protection.
Quick Summary: Average UK home insurance is £430/year. Potential savings of £300+ by comparing. Best time to switch: 21 days before renewal. Top tip: Never auto-renew without comparing first.
Buildings Insurance vs Contents Insurance
Buildings Insurance
- Covers the structure: walls, roof, floors, ceilings
- Permanent fixtures (kitchen, bathroom)
- Garages, sheds, and outbuildings
- Fences, gates, and driveways
- Damage from fire, flood, storm, subsidence
- Required for: All mortgage holders (lender requirement)
Contents Insurance
- Furniture, electronics, appliances
- Clothing, jewellery, valuables
- Carpets and curtains
- Theft or damage to your belongings
- Recommended for: Everyone, including renters
How Much Does Home Insurance Cost?
| Property Type | Buildings Only | Contents Only | Combined |
|---|---|---|---|
| Terraced House | £180–250 | £120–180 | £300–400 |
| Semi-Detached | £200–280 | £140–200 | £340–450 |
| Detached House | £250–350 | £180–250 | £400–550 |
| Flat/Apartment | £150–220 | £100–150 | £250–350 |
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What's Covered and What's Not?
✅ Typically Covered
- Fire, smoke, and explosion damage
- Storm and flood damage
- Burst pipes and water damage
- Subsidence and ground movement
- Theft and burglary
- Vandalism and malicious damage
- Falling trees or objects
- Impact damage (e.g. car hitting your house)
- Public liability (someone injured on your property)
❌ Usually NOT Covered (Unless Added)
- Accidental damage (spilled wine, broken TV)
- Home emergency cover (boiler breakdowns)
- Personal possessions outside the home
- High-value items over £1,500 (jewellery, art)
- Garden furniture and plants
- Bicycles (over £500 usually requires extra cover)
- Wear and tear or gradual deterioration
Buildings vs Contents: Which Do You Need?
Homeowners
Need buildings (required by mortgage lender) + contents (recommended). Combined policy saves 10–15%.
Renters
Don't need buildings (landlord's responsibility). DO need contents for your own belongings. Average cost: £120–180/year.
Landlords
Need buildings insurance + landlord insurance (includes liability + loss of rent). Tenant's belongings are NOT covered.
How to Save £300+ on Home Insurance
- 1Compare every year — The average household could save £318 by switching. Loyalty doesn't pay.
- 2Never auto-renew — Even with price parity rules, switching between insurers still saves money by accessing the full market.
- 3Increase your excess — £100 → £500 excess saves £50–100/year. £1,000 excess saves £100–150/year.
- 4Improve home security — Burglar alarm saves 5–10%; approved locks save 3–5%
- 5Pay annually — Monthly payments include APR of 20–40%. Paying annually saves £30–80/year.
- 6Bundle buildings + contents — Combined policies typically cost 10–15% less than separate policies.
- 7Use the correct rebuild cost — Insure for rebuild cost (not estate agent valuation). Use the RICS calculator.
Top UK Home Insurance Providers 2026
| Provider | Best For | Trustpilot | Price |
|---|---|---|---|
| Aviva | Overall cover | 4.5/5 | ££ |
| Admiral | Value for money | 4.6/5 | ££ |
| LV= | Claims handling | 4.4/5 | ££ |
| Direct Line | Customer service | 4.3/5 | £££ |
| Churchill | Online discounts | 4.2/5 | ££ |
How to Make a Claim
Before You Claim — Think First
- Check your excess — if damage costs £400 and excess is £500, don't claim
- One claim typically increases next year's premium by 20–30%
- Small damages are often cheaper to pay yourself
The Claim Process
- 1Contact insurer immediately (within 24–48 hours for theft)
- 2For theft/vandalism: get a crime reference number from police first
- 3Take photos of all damage before any repairs
- 4Get repair quotes (3 if possible)
- 5Don't start repairs until insurer approves (except emergency work)
- 6Keep all receipts for emergency repairs and hotel stays
FAQs
What's the difference between market value and rebuild cost?
Market value: What you'd sell the house for (e.g. £300k). Rebuild cost: What it costs to rebuild from scratch (often £150–250k). Always insure for rebuild cost — not market value!
Will my premium go up after a claim?
Usually yes — expect a 20–30% increase at next renewal. Non-fault claims (e.g. someone drives into your house) shouldn't increase your premium.
Do I need home insurance if I own outright?
It's not legally required, but it's financially reckless not to have it. A house fire could cost £200k–400k to rebuild. Contents insurance is also highly recommended.
Always choose insurers regulated by the FCA (Financial Conduct Authority). Read reviews on Trustpilot before purchasing.
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Sento earns a referral if you click through our links — this never affects our recommendations. Prices and details correct at time of publication. Updated February 2026.