Best Home Insurance Options

When it comes to home insurance, there are a few things to consider before choosing a provider. The best home insurance provider can vary depending on your needs, household profile, and budget. Some factors to keep in mind are the location of your home, whether you want buildings insurance, contents insurance, or a combined policy, and the level of coverage offered.

- Tesco Bank: Offers unlimited buildings cover and includes valuable items not specified on your schedule in its contents policy.

- Axa: Provides three tiers of cover and offers a three-year guarantee for building repairs.

- Direct Line: Offers three levels of cover and equal cover limit for shed or garage-stored possessions.

- LV: Offers two tiers of cover and covers damage caused by the gradual buildup of groundwater.

- Saga: Tailored for customers in their 50s and above, with up to £100,000 for alternative accommodation.

- Aviva: Provides two tiers of cover and a good range of optional extras.

- Rias: Tailored for households with older or medically challenged occupants and offers features like theft by bogus officials.

- Churchill: Offers two levels of cover and customisable policies with a range of optional extras.

- Esure: Offers unlimited buildings and contents cover and up to £10,000 for business equipment.

- Hastings Direct: Offers three levels of cover, including generous tenant's liability limits.

Customer satisfaction

• Amica has been recognised by J.D. Power for its customer satisfaction, ranking first in the 2024 Property Claims Satisfaction Study and second in the 2023 U.S. Home Insurance Study. It also has a low NAIC (National Association of Insurance Commissioners) complaint index of 0.33. Amica is known for its great customer service and has high customer satisfaction ratings and low consumer complaints. It offers a Platinum Choice package that provides extra coverage.
• Erie has been recognised by J.D. Power for its customer satisfaction, ranking first in the 2023 U.S. Home Insurance Study and third in the 2024 U.S. Property Claims Satisfaction Study. It also has a low NAIC complaint index of 0.50. Erie offers a simple online claims filing and tracking system. It also has a banned dog breed list.
• USAA is known for its excellent customer service and competitive rates. It has a low NAIC complaint index of 0.50 and has ranked higher than the national average in the J.D. Power U.S. Property Claims Satisfaction Study. USAA is only available to active military members, veterans and their families.
• Chubb has consistently had extremely low levels of complaints about its home insurance, reflecting strong customer satisfaction. It offers a HomeScan program to help prevent damage by finding leaks, missing insulation and faulty electrical connections.
• State Farm has a large network of agents throughout the country and is known for its broad national presence and reliable customer service. It has an above-average J.D. Power overall satisfaction score.
• Allstate has a slightly below-average J.D. Power claims satisfaction rating but has a low complaint level, indicating overall customer satisfaction. It offers extended replacement cost coverage and a broad range of discounts.
• Nationwide has a large library of consumer-centric content and a highly-rated app that allows users to get quotes, file claims and look up policy details. It has a low NAIC complaint index and offers generous coverage.
• Auto-Owners has very low complaint levels and strong customer satisfaction ratings. It offers extended replacement cost and guaranteed replacement cost coverage.

Rebuild cost

The rebuild cost of a house is the amount it would cost to completely rebuild the home to its existing design and specifications if it were destroyed by an event like a fire or flood. This includes the price of labour and materials, as well as other associated expenses such as the cost of clearing the site of the damaged structure, installing plumbing, gas, electricity and lighting, and professional costs (architects, surveyors, consultant engineers and legal).

The rebuild cost is not the same as the market value of the house. The rebuild cost is usually lower than the house's sale price or market value. Basing your insurance policy on the rebuild cost will prevent you from over-insuring and paying higher premiums than necessary.

There are several ways to calculate the rebuild cost of a house. One way is to use an online calculator, such as the one provided by the Building Cost Information Service (BCIS) of the Royal Institution of Chartered Surveyors (RICS). This calculator takes into account the external floor area of the house, including all upper storeys. However, this calculator has its limitations. It cannot be used for historic or listed buildings, which have to be rebuilt with traditional materials and methods, or for flats and maisonettes.

Another way to calculate the rebuild cost is to hire a chartered surveyor to perform the calculations for you. They will take detailed measurements of your home and prepare a professional Rebuilding Cost Assessment. This option is more expensive but may be more accurate, especially for non-standard homes.

It is important to calculate the rebuild cost as accurately as possible and to review it regularly, as the cost of rebuilding a home can change over time due to fluctuations in the costs of building materials and labour.

Contents cover

Contents insurance covers the cost of repairing or replacing your possessions if they are lost, damaged or stolen. It is not compulsory to have contents insurance, but it is recommended to protect your possessions.

Contents insurance covers the cost of replacing items in your home, garage or shed if they are destroyed, damaged or stolen. It also covers legal liability, alternative accommodation, replacement keys and locks, and spoiled food if your freezer breaks down.

Contents insurance does not usually cover damage due to normal wear and tear, accidental damage (although this can sometimes be added for an extra cost), high-value items (unless specified) or business-related accidents or damage.

It is important to accurately calculate the value of your contents to ensure you have the right amount of cover. Most insurers will only cover you on a proportional basis, so underinsuring can lead to claims being cut. You will also usually need to list expensive items separately.

The average cost of contents-only insurance is around £66 per year, but this can vary depending on factors such as the value of your contents, any high-value items, your previous claims history, whether you own or rent your property, and when your home is occupied.

There are several ways to reduce the cost of contents insurance:

• Shop around and compare quotes from different providers.
• Pay your premiums annually instead of monthly.
• Choose basic cover and avoid adding extra insurance you don't need.
• Raise the excess (the amount you pay towards any claim).
• Combine contents and buildings insurance with the same insurer.
• Build up a no-claims discount.
• Improve your home security with high-quality locks, burglar alarms and smoke alarms.

Recommended contents insurance providers

Recommended contents insurance providers in the UK include NFU Mutual, LV, Aviva, Direct Line, Ecclesiastical Insurance, Homeprotect, Nationwide Home Insurance, TSB Pick and Protect, and SAGIC (Salvation Army General Insurance Corporation).

Excess

Having a higher excess could mean you pay a lower premium as you'd be paying more towards any claim you make. However, it's important to weigh up the costs as a high excess only saves you money if you don't make a claim. Therefore, make sure that you'll be able to afford to pay the excess if you need to.

Different parts of your policy may have different levels of excess. For example, for accidental damage, the compulsory excess could be around £50 and the voluntary excess could be £250. So, in the event of a claim, you'd pay £300. Claims that are typically expensive, such as subsidence, usually attract a higher compulsory excess. In this case, the compulsory excess could be £1,000 with a voluntary excess of £250, meaning you'd have to pay out £1,250 to make a claim.

If you've got both buildings and contents cover, some insurance providers may charge only one excess on something that damages both your home and contents. Others may want you to pay the excesses on both. Make sure you understand what's required by your policy before you buy.

Premiums

When it comes to house insurance, there are a number of factors that can affect the cost of premiums. Here are some key considerations:

• Property Type and Location: The type and location of your property can impact the cost of insurance. For example, houses tend to be more expensive to insure than flats or bungalows due to their larger size and increased risk of damage from extreme weather. Additionally, certain areas may have higher crime rates or be more prone to flooding, which can result in higher premiums.
• Size and Value of Home: The size and value of your home, including the number of bedrooms, can influence the cost of insurance. A larger home with more bedrooms will typically have a higher rebuild value, leading to higher insurance costs.
• Age and Condition of Home: Older properties or those in poor condition may be more costly to insure. Listed buildings or older homes can be more expensive to rebuild, resulting in higher insurance premiums.
• Building Materials: The materials used to construct your home can also play a role in determining premiums. Homes built with fire-proof materials, such as brick, often have lower insurance costs. On the other hand, homes with timber frames or thatched roofs may be at a higher risk of fire damage.
• Coverage Options and Excess: The coverage options you choose and the level of excess you select can impact your premium. A higher excess may result in lower premiums, while adding optional extras like accidental damage cover or home emergency cover will increase the overall cost.
• Claims History and Credit Score: Your claims history and credit score can also be taken into account. Individuals with a history of claims or a poor credit score may end up paying more for their cover.
• Lifestyle Factors: Your age, family situation, and the amount of time you spend away from home can also influence premiums. Older individuals tend to pay less, while the addition of children or pets may result in an increase in possessions and, consequently, insurance costs.
• Payment Options: Paying for your insurance annually is typically more cost-effective than paying in monthly instalments, as interest is usually added to monthly payments.

Frequently asked questions