Protecting your home
Although you have no legal obligation to insure your home, your mortgage company will want to protect their investment with buildings insurance. However, it is also worth protecting your own investments, so even after youve paid off your mortgage, you should ensure youre financially covered.
Home contents insurance and personal possessions insurance
According to Money Observer, the average home has 44,000 of contents and replacing this without insurance would be almost impossible for most people. An average premium is about 150 a year and will provide cover up to 50,000. The majority of contents insurance policies additionally provide public liability and personal legal expenses and although most people dont claim on these, they could be very useful if needed.
Personal possessions insurance is worth taking out because often it covers your belongings outside the home, as well as inside the home, and is often incorporated into your contents insurance. Personal possessions insurance is also frequently referred to as all risks insurance and offers cover on possessions that are lost or stolen outside of the home.