Home insurance protects against a wide range of risks, but it does not cover everything. Understanding exactly what is and is not included prevents nasty surprises at claim time.
Buildings insurance is designed to protect the physical structure of your home against sudden, unexpected events. The most common covered perils — the insured events that trigger a valid claim — include fire and smoke damage, storm and wind damage, flood damage, escape of water from pipes, tanks, or heating systems, subsidence, heave and landslip, theft or attempted theft causing structural damage, vandalism and malicious damage, falling trees or branches, impact by vehicles or aircraft, and explosion.
Buildings insurance also typically covers the cost of alternative accommodation if your home becomes uninhabitable due to an insured event. This is an important but often overlooked element of the policy — if a burst pipe floods your ground floor and the property needs several weeks of drying and repair, the insurer should cover the cost of renting temporary accommodation or staying in a hotel.
The cover extends to permanent structures within the boundary of your property, including fitted kitchens, built-in wardrobes, bathroom suites, central heating systems, internal decorations, garages, outbuildings, boundary walls, fences, gates, driveways, paths, and permanent swimming pools. Essentially, anything that would remain if you picked the house up and turned it upside down is covered by buildings insurance.
Contents insurance covers your personal belongings against the same range of perils as buildings insurance — fire, flood, storm, theft, vandalism, and escape of water. The key difference is that contents insurance covers items that are not permanently fixed to the building: furniture, electronics, clothing, jewellery, kitchen appliances (freestanding ones), artwork, books, toys, sports equipment, and general household items.
Most contents policies also provide limited cover for personal possessions outside the home — items you take with you when you leave the property. This typically covers your belongings while you are shopping, travelling, or at work. However, the cover limits for possessions outside the home are usually lower than for items within the home, and there are often restrictions on what is covered (for example, cash may only be covered up to £250 to £500).
Contents insurance usually includes cover for food in your freezer if it spoils due to a power cut or appliance breakdown — a surprisingly common claim. It may also cover the cost of replacing locks if your keys are lost or stolen, and temporary removal of contents to another location (for example, while decorating or during building work).
Home insurance is designed to cover sudden, unexpected events — not the gradual decline of your property over time. If your roof tiles are crumbling because they are 50 years old and have never been replaced, this is not covered. If a tile is torn off by a storm, that is covered. The distinction between maintenance failure and insured events is one of the most common reasons for claim disputes.
Damage that results from a failure to maintain the property is generally not covered. If a pipe freezes and bursts because you left your heating off during a cold spell and did not drain the system, the insurer may argue that the damage was caused by your lack of maintenance rather than by an insured event. Similarly, if a roof leaks because damaged tiles were never replaced, the resulting water damage may not be covered.
Many people are surprised to learn that accidental damage is not covered by standard home insurance policies. If you accidentally drill through a water pipe, drop a heavy object on your kitchen floor, or put your foot through the ceiling while in the loft, these incidents are not covered unless you have specifically added accidental damage cover to your policy. This optional extra typically costs £20 to £50 per year and is well worth considering.
Most contents insurance policies have a single-item limit — a maximum amount that will be paid for any individual item. This is typically £1,000 to £2,000 per item. If you have jewellery, watches, artwork, or other items worth more than this limit, they need to be individually specified on the policy (sometimes called scheduling or listing). Specified items are covered for their full value but may increase your premium.
Some policies exclude theft if there were no signs of forced entry to the property. This means that if a burglar enters through an unlocked window or an open door, the claim may be denied. Theft from outbuildings (sheds, garages) is often subject to separate, lower limits. Theft by a member of the household or by invited guests is typically not covered.
Damage caused by domestic pets — a dog chewing furniture, a cat scratching curtains — is not covered by home insurance. Pest damage from rats, mice, insects, or woodworm is also excluded. These are considered maintenance and housekeeping issues rather than insurable events.
The specific terms and exclusions of your home insurance policy are set out in the policy wording document. This is the legal contract between you and the insurer, and it is the document that determines whether a claim is paid. While policy wording can be complex, it is important to read and understand the key sections — particularly the exclusions, conditions, and your responsibilities as the policyholder.
Pay particular attention to conditions that require you to take specific actions, such as maintaining adequate security, notifying the insurer of changes to the property, or reporting claims within a certain timeframe. Failure to meet these conditions can give the insurer grounds to reduce or deny a claim.
The best way to ensure your home insurance provides adequate protection is to work with an experienced insurance broker who can review your specific needs and recommend a policy that matches them. Nesto matches you with home insurance brokers who can explain what is and is not covered in plain English and help you avoid the gaps that catch many homeowners out. The matching service is free.
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