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Home Insurance Basics: Why Going Cheap Can Cost You More!

Updated: May 16

Choosing the right home insurance can be challenging, especially for first time buyers and those moving home. It's tempting to pick the least expensive option from comparison sites because it looks simple and affordable. But when it comes to protecting your home, your most valuable asset, it's crucial to understand that the best value isn't just about being cheap. Spending a bit more can mean getting better coverage that truly protects you when you need it most. Here, you will discover the key factors to consider, understand why certain home insurance policies cost less than others, and recognise the genuine worth of investing a bit more each month.

Understanding the Basics

Home insurance is broadly divided into two categories: buildings insurance and contents insurance. Buildings insurance covers the structure of your home and permanent fixtures, while contents insurance protects your personal belongings within the home. Opting for a policy that adequately covers both aspects is the first step in safeguarding your investment and peace of mind.

Buildings Insurance is not optional

When securing a mortgage, obtaining Buildings Insurance is not optional—it's a mandatory condition of your mortgage offer. This insurance must be active from the moment you exchange contracts, marking a critical step in the home buying process. It's imperative not to delay this task until the last minute to ensure a smooth and compliant transaction.

The Pitfalls of Cut-Price Policies

Cheaper insurance policies often found on comparison sites may initially seem attractive, but they can come with high excesses, limited coverage and hidden exclusions. When disaster strikes, finding out that your policy does not cover the full extent of the damage or that you have a significant financial shortfall can be devastating.

The Value of Comprehensive Coverage

Investing in a comprehensive home insurance policy goes beyond basic protection. Look for value-added benefits that offer more than just the essentials, such as:

Extended Accidental Damage Cover

Life is unpredictable. Whether it's a wine spill on a new carpet or a DIY mishap, extended accidental damage cover provides broader protection against life's little, but sometimes costly, accidents. This add-on may come at an extra cost, but it can save you from expensive repairs or replacements overall.

Trace & Access Cover

Identifying and repairing leaks can be both challenging and costly. Trace and access cover is invaluable, covering the cost of locating the source of a leak and making good the damage caused during the search & repair. Without this coverage, you could find yourself facing a hefty bill for plumbing and structural repairs.

Cover for Your Contents Away from Home

Our lives are increasingly mobile, and so are our valuables. Policies that cover contents away from home, including mobiles and tablets, ensure that your belongings are protected even when you're on the move. This can prove very cost-effective, especially if you are currently paying for separate mobile phone insurance.

Alternative Accommodation

If your home becomes uninhabitable from a covered loss, the importance of having alternative accommodation cover is clear. This ensures you and your family have a place to stay, offering peace of mind during stressful times. Whether it's due to major damage needing extensive repairs or a natural disaster, knowing your insurance includes temporary living expenses removes a heavy burden. This coverage highlights the importance of selecting a policy that truly supports you, transforming it from paperwork into a real safety net when it's needed most.

Making an Informed Choice

When choosing home insurance, it's essential to read the fine print and understand the scope of coverage. Consider factors such as the level of excess, exclusions, and the claims process. It's also prudent to research the insurer's customer service and claims handling reputation. While cost is a principal factor, it shouldn't be the sole decision-maker. Ultimately, investing in comprehensive coverage means investing in peace of mind and protecting your most significant asset for the long term. So, when it comes to home insurance essentials, remember, cheaper isn't always better.

Why Defaqto Ratings Matter in Choosing Home Insurance

Choosing the right home insurance is easier when you look at Defaqto Star Ratings. These ratings give you a fair assessment of quality, helping you pick the best financial products with confidence. Defaqto has the UK's largest database of financial products, carefully reviewing each one on the market. This means you can trust that you're making a smart choice in protecting your home.

Why You Need to Be Accurate with Your Home Insurance Application

Going through the home insurance application process can feel like trying to find your way through a maze that's full of complex terms and detailed questions. Insurance companies usually ask for a lot of information about your home, what's inside it, and how you live. If you get any details wrong or misunderstand a question, it could lead to big problems, like your policy being cancelled or a claim being rejected. This would leave you unprotected when you need help the most.

It's therefore important to not only give accurate answers but also to understand what you're sharing. This emphasises how crucial it is to pay close attention to details when you're looking for reliable home insurance.

The Bottom Line

Your home is more than just bricks and mortar; it's a haven for you and your loved ones, often filled with treasured possessions and memories. Opting for a cheaper, stripped back insurance product might save you money in the short term, but it could cost you dearly overall. Investing in a comprehensive policy that offers extended coverage and value-added benefits is not just about protecting your physical property; it's about ensuring peace of mind for you and your family.

Remember, when it comes to home insurance, the cheapest option is rarely the best. By prioritising coverage that meets your specific needs, you can rest easy knowing that you're well protected, whatever life throws your way.


As with all insurance policies, conditions and exclusions will apply.

Published by Beechwood Mortgages Ref: 219335 with review and approval from Stonebridge Mortgage Solutions Limited who is authorised and regulated by the Financial Conduct Authority Ref: 454811.


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