Although home insurance isn't a legal requirement, it is recommended, because it can give you the peace of mind that your home and its contents are covered in the event or damage, destruction, theft or loss. Home insurance policies generally include both building insurance and contents insurance, but you can buy these two types of cover separately.

When insuring your home for buildings and contents insurance, many people are unsure as to how much to insure, and unfortunately, many people are underinsured. For the buildings element, the amount shown on the valuation report of property is the amount that needs to be covered. Many valuations will state the value of the property for rebuilding purposes – this is the figure you need. If you don’t have a valuation, you could always ask for one from a local estate agent by telling them you are thinking of selling. The main point is that if damage occurs and your home needs to be rebuilt, the insurance money should cover all work to completely rebuild the property.