A Guide to Buying Home Insurance for First Time Buyers

Purchasing your first home is an exciting time. From your first viewing to the day you collect the keys there's a whirlwind of legal dealings, mortgage discussions and stress to work around. There's so much to do and never enough time to do it all. Amongst the mortgage applications and signing of deeds there are some small, but hugely important details that need to be finalised, not least your home insurance.

Many mortgage providers demand that you have at least secured buildings insurance by the time you moved in. This is often also accompanied by other stipulations including a valid life insurance policy. Therefore you need to spend a bit of time lining up your home insurance by the time you come to cross the threshold.

So What Home Insurance Do You Need?

Buildings Insurance

Home insurance is made up of two separate forms of cover. The first is buildings cover. This is what will protect the physical building. So if your home is gutted by fire or damaged by subsidence, this ensures that you are protected and will be able to afford any necessary repairs. Contents insurance is required by law, therefore it's essential that this is sorted out before moving in (although your mortgage adviser will probably remind you of this requirement, as your agreement will only be finalised on the basis that this has been purchased).

Contents Insurance

The second coverage option is contents insurance. This, as the name suggests, will insure all of the possessions within your home. It is a little more complicated than buildings insurance, as it requires that you estimate the value of your goods and get a policy based on this valuation. You won't need to get the highest level of cover; however, if you choose to go for a more affordable option by reducing coverage levels, you might not receive full compensation in the event of a claim.

Contents cover shouldn't be viewed as an option. Every home should be protected by both buildings and content insurance so as to cover any potential misfortune in the future. Whilst there is a cost inevitably associated with this comprehensive cover, it shouldn't be prohibitive.

As a new buyer you may not have built up a significant no claims bonus, which will mean that you pay a little more initially. Over time though these policy prices should gradually lower, which could see them reduced by over a third.

How to Save Money

However there is still good value to be had by going out and seeing what various insurance companies can offer you by way of a quote. Just because you're new to the market, it doesn't mean that you should pay any more than you have to in order to secure a decent home insurance policy.

One great way of saving a few pounds is to go online. Not only do most insurers now have their own websites from which you can source a quote, but many will also provide a special Internet-only discount. You can also get further money off if you purchase both building and contents insurance through a single provider. This could amount to anything up to 25% (depending on the provider) so it's well worth getting a variety of quotes and seeing where the real value is.

So whilst buying green home insurance is hardly the most exciting thing about being a first time buyer, it is a necessity. Set out a budget for how much you're able to spend and determine the level of cover that you're comfortable with. Wherever you choose to source your quotes, it is always worth getting a good few to make sure that you're getting the best deal possible. Weigh up the comparative benefits, both in terms of the policy cost and what it covers, then dive in and choose the one that best matches your needs.