What to Consider when Choosing your Home Insurance

by Martin McRandal | 2 min read   December 21st, 2020

Sometimes annual insurance premiums may feel like an additional, unnecessary expense. One that you struggle to see the benefit from. However, the day might come when you need to call upon it and on that day your choice of cover and product may just be one of the most important financial decisions you have ever made.


It goes without saying that price is important. We all want a good deal and to save money wherever we can. However, if you make your decision based solely on price it may come back to haunt you one day. Making savings on your insurance policy may end up costing you in the long run.

Cover options

With Home Insurance you have various cover options:

  1. Buildings Insurance – If you have a mortgage on your home then your mortgage provider will require you to maintain adequate Buildings Insurance cover.
  2. Contents Insurance – This covers your personal possessions and those of the people who permanently live with you, whilst those items are in your home.
  3. Cover for Accidental Damage – Buildings and Contents covers loss or damage resulting from a specified list of physical perils, including fire, theft, escape of water or oil, storm, flood. It is common for insurance product providers to offer the option to extend cover to include accidental damage, in return for an additional premium. An example of accidental damage is accidentally spilling paint on a carpet.
  4. Personal Possessions. You may choose to cover personal possessions that you take away from your home, eg: a mobile phone, a bicycle, jewellery.

Consider your needs

Home insurance can be quite complex and there are lots of different cover elements. The differences in cover can be significant, depending on your particular circumstances and needs.

For example, some of us may spend extended periods of time away from our main home. Perhaps because we have family members who live elsewhere, or because we have a second home. It is common for home insurance policies to allow the insured property to be unoccupied for a specified time period. The time period allowed varies by insurer and by home insurance product. The effect of that ‘allowed’ period of un-occupancy being exceeded also varies. Typically though it results in important cover elements such as theft and escape of water becoming inoperative.

Home insurance policies often include a number of significant cover benefits. A common one is cover for contents temporarily removed from the insured home. For some policies this automatically extends to provide cover for possessions of students (your son or daughter who normally live with you) living away from home.


The purchase of an insurance product is an important financial decision for each of us to make. For home insurance there are a number of cover options to consider. When making the decision it is important to consider the risk involved and whether you can afford to carry the risk of loss and its’ financial implications, then weigh that up against the insurance cost.

Your purchase decision shouldn’t be based solely on the cost of the insurance product. There are lots of factors to think about and each individual will have their own Home Insurance needs. If you do have any questions or concerns, don’t hesitate to ask your insurance company or provider.


This guidance is for general information purposes only. Allianz accepts no responsibility or liability for any losses that may arise from any reliance upon the information contained in this guidance.

Martin McRandal
Business owner, consultant, and expert witness. Former motor and property insurance underwriter.