Find out which sort of insurance you should consider for a three-bedroom property, including whether you should choose buildings, contents or combined cover
Whatever the size of your home, you’ll want to protect it, and everything you keep in it, too. That’s why taking out home insurance is important.
There are two types of home insurance - buildings and contents cover.
Buildings insurance covers the cost of any structural repairs your home requires as a result of damage caused by events like storms, floods or a fire.
The amount your home is insured for under a buildings insurance policy should reflect what it would cost to rebuild it from scratch. This isn’t the market value of your home.
Many standard buildings insurance policies cover you for rebuild costs up to £500,000. If you live in a modern three-bedroomed home, this should be more than enough.
Contents insurance helps cover the cost of repairing or replacing your belongings if they get stolen, or damaged and destroyed due to fire, flood, theft and vandalism.
Everything from your furniture and your clothes to your TV are covered. In short, anything in your home that you’d take away with you if you moved.
You can buy buildings and contents policies separately, or in a combined policy, which usually works out cheaper.
*The average cost of combined buildings and contents insurance policies by number of bedrooms purchased through Gocompare between January-March 2021.
Our research shows that the average cost of a combined buildings and contents insurance policy for a three-bedroom home is £156.
Not surprisingly, it also indicates that the average price of home insurance increases the more bedrooms a property has.
Factors that influence the cost of your home insurance include:
Houses tend to be more costly to insure than flats or bungalows. Larger homes, with more bedrooms, will often cost more to insure. That’s usually because they’re more expensive and hold more contents than smaller properties. Even the number of bathrooms in your home can have a bearing on cost.
The more people that live in your home, the greater the risk of accidental damage. So, insurers may push up premiums to reflect that risk.
Older people are often regarded by insurers as less of a risk to insure as they tend to make fewer claims than younger people.
If you’ve made claims recently you could face higher premiums.
Homes built using unusual materials like those with thatched roofs, will cost more to insure. That’s because these materials can be costly to replace, plus they may make your home more at risk of fire.
Your postcode plays a big part in determining what premium you pay. For example, if you live in an area which has higher than average rates of burglary claims, you could face higher premiums. Similarly, if you live in a flood-risk area, your premiums might be higher than average, too.
Adding things like accidental damage, home emergency or personal possessions cover can push up the cost of premiums.
If you’re renting a three-bedroomed home, buildings insurance will be the responsibility of the council or your landlord.
If you rent a furnished home, then your landlord will likely have contents insurance in place to protect the carpets, sofas and beds they’ve provided.
But your possessions, including clothes, tv, laptop and jewellery, are your responsibility to insure.
Similarly, if you’re renting an unfurnished home, then you’ll need to take out contents insurance to protect everything in it. This includes the furniture and furnishings, as well as your personal effects.
If you’re wondering whether or not to take out contents insurance for your three-bedroomed rented property, you should consider how you’d afford to replace everything you own if it was stolen or destroyed.
The price you pay for insurance will partly depend on the sum insured. For buildings insurance, this is the cost of rebuilding your property if it was destroyed. And for contents insurance, this is the total cost of your possessions.
There are two main ways insurers work out premiums and sums insured.
With a sum insured contents policy, it’s up to you to calculate the amount of cover you need. You can do this by adding up what all your belongings would cost to replace and then making sure the sum insured you opt for is high enough.
Similarly, with a sum insured buildings policy, it’s up to you to estimate your home’s rebuild costs. You can find it on your mortgage valuation report, the deeds to your home or the surveyor’s report. Alternatively, you can use the residential rebuilding cost calculator from the Building Cost Information Service (BCIS).
With a bedroom-rated policy, the insurer sets the sum insured based on the number of bedrooms you have. The more bedrooms you have, the more expensive your sum insured (and premiums) will be.
Bedroom-rated contents policies like this should be more than enough to cover the average home.
However, if you don’t have many high-value belongings, you could end up paying higher premiums than you really need to.
On the other hand, if you have lots of valuable items, the sum insured on a bedroom-rated policy might not be enough to cover you.
It’s important to check. You may be better off looking at a sum insured contents policy, which will cover you only for the exact cost of your belongings.
It’s always a good idea to look at the different types of policies available when insuring your three-bedroom home.
You can compare home insurance with us quickly and easily.