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The importance of UK Home Insurance

Note from editor: Although this article is targeted to UK home owners, most information is applicable to other markets, including the U.S.

When it comes to protecting what is likely to be one of your largest investments, why is it that we would rather purchase a premium brand of coffee, than get the right home insurance. In the UK property market studies have shown that only four in ten of us decide to go for advice via an expert on our general insurance (GI) needs, whereas three in ten will go directly to the insurance company. But which, out of the vast amount of avenues available, will offer you the right coverage?

"Home Insurance" by vichie81In these difficult financial times it is more important than ever for UK homeowners, including first time property buyers to understand what insurance they have available to them and whether it will do what they expect it to – pay out when there is a rightful claim.

UK Home Insurance Comparison Websites

With the rise of the internet, there has come helpful websites that allow shopping around to be easier and more precise for borrowers. Most price comparison websites are designed to see the best deal in terms of price alone, but cheapest doesn’t necessarily mean best. Would you go about buying the cheapest laptop or cheapest car? In addition, comparison websites don’t cover all insurances so you could be left out finding the best deals for yourself. Instead carry out a thorough check on as many insurance companies as possible, citing the ones that suit your needs and wants.

Insurance Risk

We have seen the rise of homeowners having their property flooded by overflowing river banks due to heavy rainfall. There is heavy doubt as to whether insurers will continue to offer coverage to homeowners in flood risk areas. There are other factors to consider other than flood risks such as owning a property built in a subsidence prone area, or the policy holder having a criminal record. As time goes on we are seeing “non standard risk” becoming part of the norm.


With the huge expense of purchasing a UK property, customers are looking to make savings wherever possible, with insurance being high up on the list. One way of getting lower premiums is to gamble on the amount that needs to be self funded should there need to be a claim. Many customers also choose to not insure their UK property for the full amount believing they will get paid on claims up to the limit of the policy. This is not very wise and can leave many searching for the full balance out of their savings.

If you really do care about protecting your most valuable possessions, and the worst happening, it is a good idea to get coverage at the best possible price.

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Image courtesy of vichie81 / FreeDigitalPhotos.net