Protecting your new home: our guide to home and contents insurance
Moving into a new place is a big deal. Whether you just bought your first home or you’re renting somewhere new, that feeling of finally getting the keys is exciting.
But before you dive into the fun stuff, like picking out paint colours or deciding where the sofa should go (important decisions, we know), there’s one crucial first step: making sure your home and belongings are protected. That’s where home insurance comes in.
Insurance can be one of those slightly complicated admin tasks that’s easy to put off until later. So we’ve put together this simple guide to walk you through it. We’ll break down what buildings and contents insurance are, explain who needs what, and help you consider the type of insurance cover you need. Forget candles and houseplants for now – peace of mind might be the best housewarming gift you can give yourself. And if you're wondering whether you need home insurance at all, we can help with that too.
Excess and exclusions apply. Monzo current account required and must be open for the whole insured period. UK residents aged 18+. Ts&Cs apply.
Buildings insurance for homeowners
First up, let's talk about the bricks and mortar – buildings insurance, which covers the physical structure of your property. Think of it this way: if you could pick up your house and give it a good shake, buildings insurance protects everything that wouldn’t fall out. That means the walls, roof, windows, and permanent fittings like your kitchen and bathroom are all covered.
If you're a renter, you can skip this bit. Your landlord is responsible for insuring the building, so you don't need to worry about it.
If you’re a homeowner with a mortgage, your lender will almost certainly need you to have buildings insurance in place from the day you exchange contracts. That’s because your home acts as security for your mortgage, and buildings insurance helps protect it – and you – against things like fire, floods, and subsidence.
A key thing to remember is that you’ll need to insure your home for its 'rebuild cost', not its market value. The market value is what you paid for it, but the rebuild cost is the amount it would take to completely rebuild your home from the ground up if it were destroyed.
Monzo home insurance covers both buildings and contents insurance for homeowners.
Contents insurance for everyone
Now for the slightly more fun part: your stuff. This is the insurance everyone could benefit from, whether you rent or own your home.
Contents insurance covers your personal belongings inside your home. To use our analogy again, it protects everything that would fall out if you turned your house upside down and shook it. This includes all of your furniture, clothes, electronics, jewellery, and even the food in your freezer. It’s easy to underestimate the value of your things – but if you had to replace it all in one go the costs would add up fast. And if you undervalue your belongings, you could end up underinsured – meaning your policy might not cover the full cost of replacing everything.
So what would contents insurance cover for you? It’s worth going from room to room and making a list of everything you own and how much it would cost to replace it all. This gives you a good idea of the total value of your belongings – and helps you find the right level of cover.
Once you've got a good idea of the total value you need to insure, you can get a contents insurance quote in minutes in the Monzo app.
What affects the cost of home insurance?
This is the big question, isn't it? The cost of home insurance can vary a lot, and it depends on a few key factors. Here are the main things that insurers look at:
Your home: the size and location of the property, how old it is, and what it’s made of.
Your security: the kinds of locks and windows you have as well as any alarm systems.
Your cover: the total value of your contents and any optional extras you choose, like accidental damage cover, will affect the price. For example, you might want to add high-value items, like a mobile phone, jewellery, or bike to your policy.
Your details: your age and previous claims history will also be taken into account.
The average cost of contents insurance can be a useful benchmark, but it's important to remember that your quote will be unique to you and your circumstances.
How to get the right cover for your home
So, how do you get the right cover without spending a fortune?
For homeowners:
With Monzo Home Insurance, we’ll estimate your rebuild cost for you using trusted third-party data, so you don’t have to. (By default, you’re covered for up to £1 million.) Once you’ve got an estimate of the value of your contents, you’re ready to get a quote.
For renters:
You only need to worry about contents insurance. Do a room-by-room inventory to get a good estimate of how much your belongings are worth, and then you're ready to get a quote.
Our mission is to make money work for everyone. You can get a home insurance quote from Monzo in just a few minutes, and we’ll give you a clear, easy-to-understand policy with no hidden fees. That’s one less thing to worry about – and means you can get back to the important stuff (like where to put that sofa).
Excess and exclusions apply. Monzo current account required and must be open for the whole insured period. UK residents aged 18+. Ts&Cs apply.
Questions? Answers.
Do I need home insurance if I'm renting?
You don't need buildings insurance, as that's your landlord's responsibility. But if you want to protect your personal belongings at home, contents insurance is one of the best ways to do so. Some landlords may even require you to have it as part of your tenancy agreement.
I'm a homeowner. Do I have to get home insurance?
If you have a mortgage, your lender will almost certainly need you to have buildings insurance. Contents insurance is optional, but it's important to remember buildings insurance only covers the structure of your property. If you want to cover your personal belongings (things like carpets, furniture, and jewellery) then it's important you take out contents insurance too.
What’s the difference between the 'market value' and 'rebuild cost' of my home?
The market value is what your home is worth if you were to sell it. The rebuild cost is the amount it would cost to completely rebuild your home from scratch if it were destroyed. Homeowners should always insure their home for its rebuild cost.
How can I get a cheaper home insurance quote?
The best way to get a cheaper quote is to shop around each year when your policy renews. It’s a good chance to check your cover, premium and excess still suit your needs. You could also lower your costs by increasing your voluntary excess or improving your home security.