Buildings insurance

If you have a mortgage, you will have no choice but to have buildings insurance. And your lender will probably be only too keen to provide it - at a cost.

It is usually wise, however, to shop around through brokers, the internet and individual companies, as the amount you will be asked to pay for the same cover will vary widely.

You need to insure the rebuilding cost, not the value of your property.

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. Otherwise, ask a surveyor.

You 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.

You 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.