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Home insurance covers you if something bad happens, such as a fire, burglary or storm damage – but what exactly you’re covered against depends on the type of policy you take out
Mum-of-two Stacy was grateful she had home insurance cover which paid out £18,000 when a fire ripped through her home earlier this year.
But the IT analyst from Wandsworth, London, was still left with unexpected fees to cover that wasn’t included in her original policy – and has issued a warning to other families about always reading the fine print. Stacy explained how the fire broke out in May 2024.
Her insurance covered the cost of repairs and replacements for damaged furniture and appliances – but there were additional costs related to temporary accommodations during the repair period that weren’t fully covered, as well as fees for specialist contractors and the clean-up.
Home insurance covers you if something bad happens, such as a fire, burglary or storm damage. But what exactly you’re covered against depends on the type of policy you take out. The three main types are: buildings insurance, contents insurance and combined buildings and contents insurance.
Stacy, who lives with her partner, plus her son, 17 and daughter, 14, had a comprehensive level of home insurance that she paid £350 a year for. This included both building and contents insurance. Stacy said: “It was a difficult experience, and I realised quickly just how valuable insurance can be in these moments, even if it’s something you hope to never actually use.
“It was just after dinner when a strange burning smell, like plastic or rubber, started to fill the house. Initially, we assumed it was something minor, but it quickly became clear that the source of the smoke was an electrical outlet in the living room. A small flame had ignited near the outlet, likely due to an issue with the wiring. Unfortunately, the fire spread quickly, catching nearby furniture.“
Stacy, who has always had home insurance, said the claims process “wasn’t exactly smooth” and took several months – but ultimately, they did step in to cover the repairs. However, she was left stunned after being told the family would need to pay £1,500 for some unexpected fees.
She said: “There were additional costs related to temporary accommodations during the repair period that weren’t fully covered, as well as certain fees for specialist contractors and clean-up. These gaps were an eye-opener and have definitely made me think about ensuring more thorough coverage in the future.”
Stacy added: “For future reference, I’ll be looking into more comprehensive options, which would provide a broader range of protection, covering potential gaps in a situation like this. It’s important to consider all possibilities and find a policy that truly matches your needs, particularly when it comes to protecting your home and loved ones.”
New research by Compare the Market has revealed 94% of home insurance policy owners received most or all of their home insurance claims from their insurer. More than one in four homeowners (28%) have claimed on their insurance policy, typically receiving an average payout of £5,640 as nearly two-thirds (63%) received full payment requested from their insurer.
Guy Anker, Director at Compare the Market, said: “The rise in living costs means households are tightening their budgets and cutting back on unnecessary expenses. It is encouraging to see that homeowners are aware of the value that having a home insurance policy brings, saving many of them spending significant amounts of money on home repairs.
“You can choose to buy buildings insurance and contents insurance either together or separately. Whether you’re a homeowner or a renter, it’s important to shop around on your home insurance to check what deals are out there and find cover which works for you.”
