Guide to home insurance

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House insurance or homeowners' insurance is an insurance policy that combines insurance for your home, the house contents, loss of use (additional living expenses), home liability insurance and often, personal possessions.

To make sure that you do not suffer as a result of any damage to your building or your possessions it is vital to invest in a suitable house insurance policy.

Buildings Insurance

Buildings insurance enables you to cover the cost of rebuilding your home in the event of a fire, flood, or other crucial damage. Buildings insurance protects the structure of your home including permanent fixtures, bathroom fittings and fitted kitchens.

It is important to note that the value of your home for insurance purposes is restricted to the cost of rebuilding the house and replacing the permanent fixtures. 'Under-insurance' can be a problem so you should inform your insurance company of any expensive modifications to your home as soon as possible.

As with most insurance products it is essential to shop around. Making sure you have quotes from a number of home insurance providers should significantly reduce your premium and ensure that you find the right product for your requirements.

Contents Insurance

House contents insurance (also known as home and contents insurance), although not compulsory in the UK, is normally available from your house insurance provider.

Be wary of home insurance providers who offer you a very cheap quote - your home often holds more than just sentimental value, replacing your items can be costly.

As a home owner your insurance policy should provide cover for household possessions such as:

* Electrical Goods: televisions, videos, computers, laptops, MP3 players, phones, hi-fis etc.

* Other Goods: carpets, furniture, bed linen, towels, clothes, shoes, CD's, books, china, cooking utensils etc.

Valuations and Additional Items

For rare or expensive items such as antiques and jewellery, ask for an evaluation. This will help with any queries the home insurance provider may have whilst ensuring you have the right level of cover.

Some possessions may need to be insured separately because all policies will have an upper limit. This limit is specific to your home insurance policy and items such as computers and mobile phones are most likely to fit into this category.

If you insure all your valuable items on your house insurance it significantly raises the premium. In addition, should you need to make a claim the premium is likely to increase again.

High risk items such as laptops and mobiles should be insured separately, the same applies for collectibles such as antiques or designer items. If this applies to you, it is very important to read the small print.

If you do not comply with the home insurer's terms and conditions they will be unlikely to settle your claim.