You can buy buildings and contents cover separately, or as a joint policy from one insurance company.
You should consider having enough buildings insurance to cover the amount it would cost you to rebuild your home from scratch. This is known as the ‘sum insured’.
The cost of rebuilding your home isn’t the same amount as the price you paid for the property, or how much it’s currently worth. The rebuild cost is usually less, as it doesn’t include the value of the land.
If you recently made a mortgage application, you’ll have received a valuation which will include a rebuild cost. You can also use the rebuilding cost calculator from the Association of British Insurers (ABI).
Some insurers may estimate this cost for you based on the number of bedrooms you have, known as a ‘bedroom-rated’ policy. And some may provide an unlimited value so you don’t need to specify the rebuild costs.
Keep in mind:
home improvements, such as adding an extension or conservatory, can increase the rebuild cost
rebuild costs can be higher for ‘non-standard construction’ properties
rebuild costs can increase over time
Most policies are index-linked, meaning they adjust to reflect increasing costs, but it’s something to check when you renew your policy, to make sure you have enough cover.
It's important you don't underestimate how much your belongings are worth. If you ever have to replace them, you’ll need enough contents insurance to cover your losses.
To work out the value of your contents, you can:
make a list of items in each room of your home, including the loft or garage
estimate how much it would cost to replace each item with a new one
add up the cost of all your items to get your estimate
Many websites offer contents insurance calculators to help you do this.
The price of most items can be searched on the internet. However, for things such as antiques, or a valuable piece of jewellery, you may want to get these valued by a professional.
Some insurance policies have a limit on how much you can claim on a single item. You may need to add extra cover for any items that exceed that limit.
The amount you spend on home insurance will depend on the type of property you have and the value of your contents. It will also depend on the amount of cover you need and if you add any optional extras.
For example, HSBC Home Insurance gives you a choice of different levels of protection for your home and contents. You can increase your cover by adding accidental damage, home emergency or legal protection.
You can also add gadget, mobile phone and home emergency cover as part of our multi-insurance policy, Select and Cover. Our cover starts from £19.50 per month for 3 options, and there’s 7 different types of insurance to choose from.
Select and Cover is available to HSBC UK customers who are registered for online banking.
Before you buy any insurance product, it’s important to read the policy and understand the details including costs to make sure you get the cover you need.
HSBC Home Insurance is provided by Aviva Insurance Limited. Exclusions and terms and conditions apply.