If you have a mortgage, you will have no choice but to have buildings insurance. By law, if you have a mortgage on your property, you require buildings insurance

Premiums will be lower for detached houses, and higher for terraced houses and flats. Your mortgage lender will tell you how much to insure when you take out your loan.

Borrowers will generally be covered for fire, flood, water damage and other hazards. Malicious acts, such as vandalism, may also be included. Accidental damage is usually an optional extra, with family legal protection another possible add-on.

Borrowers may get a discount if you buy combined building and contents insurance and also if your home meets your insurer's security requirements, including specific types of window and door locks. It may also be beneficial to agree to a deal lasting more than one year, although it is a good idea to include an opt-out if rates are increased.

This is the insurance of contents within your home, for example jewellery, paintings, furniture, clothing and personal possessions. Providers usually offer contents insurance to borrowers, but it is not essential that you should take it from them, or at all. Some policies offer a wider policy covering more risks others offer less and with lower premiums.

Contents cover is a separate type of insurance to buildings insurance, which covers the structure of your property, however they are often sold together and some insurers will offer a discount if purchased together.

Reduce the cost of your premiums

The premium you will pay for home buildings or contents insurance can vary widely depending on what kind of cover you want, how big your house is, how valuable your possessions are, and where you live - postcodes play a huge part in the calculation of premium.

• Burglar alarms - if you live in a postcode area with a high crime rate it's worth investing in a good security system. Most insurers will offer you a discount if you have done this - although check with your insurer first as many companies insist the installation of alarms is carried out by companies registered with the National Approval Council for Security Systems.
• Locks - Before they will cover you, some insurers insist you fit locks which they specify; others will reduce the premium. The Association of British Insurers recommends fitting outside doors with deadlocks which conform to BS3621. These doors can only be opened with a key. Inside locks and bolts are also a good idea, although remember they are only as strong as the door or the door frame, so check for weak or rotten wood. Patio doors are particularly vulnerable. Glass panes can easily be removed and sliding doors can be lifted of their tracks. Fit them with extra security locks. Accessible windows, those on the ground floor or near drainpipes and walls, should be fitted with key locks. Remember, most burglars enter through windows.
• Community schemes - Joining a neighbourhood watch scheme would also lower your premium.
• Flooding and subsidence - Areas that are prone to flooding or subsidence are also prone to higher insurance costs. Unfortunately there is not a lot you can do about this, beyond moving house and taking precautions once a flood warning has been issued. Moving valuable items upstairs and turning off stop cocks and electricity can minimise the damage.

For further assistance, call us on 0800 612 7688.