When taking out a mortgage, you will no doubt be offered the opportunity to purchase some form of home insurance at the same time. You will, as a condition of accepting that mortgage, probably be required to hold home insurance – the mortgage lender is keen to protect their investment, as if the house burnt down, there would be no longer any asset on which the mortgage was secured and the chances of you defaulting on your repayments would correspondingly increase.
In general, there are three levels of home insurance. The first, buildings insurance would as the name suggests, cover you for specific risks such as damage to your property due to lightning, vandalism, broken glass, fire, explosion and hail, for example. Note that it is important to read the small print, as some insurance contracts contain clauses such that you are not covered for certain 'Acts of God', although their number is decreasing these days.
The second level of home insurance cover available from a top provider like Co-Operative Insurance will cover you for most or all of the above, together with extra eventualities like freezing pipes – and the damaged caused by them – heating systems that cease to operate, damage caused by weight of snow or ice e.g. to the roof, accidental personal injury from artificially generated currents to electrical appliances, and certain domestic appliances.
Thirdly, because in the first two levels of cover, you will find that certain items may be excluded, and it is often worthwhile going for a fully comprehensive type policy. In addition to the above, it could incorporate full contents insurance as well as buildings insurance. This means that fixtures and fittings as well as personal possessions are protected financially from risk of theft etc. Remember that you should compile as complete an inventory as possible or items that you wish to be covered, as this makes it easier to resolve any disputes over what is reasonably covered at a later date.
Co-Operative Insurance are able to offer advice as to the best deal available to you, and will take into account your personal circumstances. You can also work with the insurer to reduce your premiums, and they will often advise that you fit approved burglar alarms and mortice deadlocks and window locks to the property, for example.