How to find the right home insurance
With the gold price hitting record highs, you may need extra home insurance cover for your belongings

Home insurance premiums are on the rise but many homeowners could find themselves underinsured due to recent increases in the price of gold.
The gold price has increased by 35.9% over the past year, said MoneyWeek, "peaking at over $3,400 (£2,530) along the way" as investors sought safe havens amid "increased uncertainty over the global economy in the run-up to and wake of Donald Trump's 'Liberation Day' tariffs".
This may provide a safety net for investors but insurer Admiral is warning that jewellery owners may now find that the value of items they covered in their policies "may have changed since they bought their jewellery, or last had it valued".
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Home insurance explained
Home insurance is cover you take out that provides "financial protection" for your home and personal possessions against unexpected events like loss, damage and theft, explained MoneySuperMarket.
There are two types: buildings insurance and contents insurance. The former covers the "structure of your home", the comparison website said, while the latter may pay out if your personal possessions are stolen or damaged at home.
It can help protect you from paying out "huge costs" in the event of "fire, flooding, subsidence or if your belongings are stolen", said Money.co.uk.
In some instances, you may not need both buildings and contents insurance. For example, with tenants, the landlord may pay for the buildings insurance on a rental property. But "it's up to them" to find contents insurance to cover your possessions, said MoneyHelper.
Additionally, if you live in a flat, you may need only contents insurance as the building will be insured by the property manager. Buildings insurance is usually required by mortgage lenders when you purchase a property but that doesn't mean you have to get contents insurance.
If you do need both, the financial website said, it's usually easier and quicker, as well as cheaper, to buy them together on a combined policy rather than taking out two separate ones.
The average insurance claim for domestic property is around £6,000, according to the Association of British Insurers (ABI). To some people, that may not seem like much. And you might even have enough savings to replace valuables like a stolen laptop or jewellery, said CompareTheMarket. But the truth is, "the decision to forgo home insurance could leave you financially exposed", the comparison site added, recommending you ask yourself: "Could you really afford to rebuild your home if there was a fire or flood?"
Why the gold price could affect your home insurance
The gold price may seem only "applicable to investors", said Howden, but it could be relevant to your home insurance policy as the rising value means if you have gold in your home such as a "family heirloom, a gift, jewellery or coins", you may now find yourself underinsured if you need to make a claim.
The items may be worth more than you think, said PolicyExpert, "or at least more than when you first took out your home cover".
Without an updated valuation, said InsuranceBusiness, homeowners are "vulnerable to financial loss in the event of theft, loss, or damage to high-value items".
In addition, many insurers have limits on cover for valuables and some items may require specific cover.
Gold prices have generally tripled in the last decade, so getting your valuables revalued is likely to be a good idea.
How much does home insurance cost?
Home insurance premiums have been rising, mainly due to the costs of bad weather damage, according to the ABI. The annual average premium for combined building and contents home insurance in the first quarter of 2025 was £393. This was just £1 lower than the previous quarter but 7% higher annually "as high claim costs continue to have an impact".
Riskier properties – such as those in a high-risk area for extreme weather or that are an easy target for burglary – tend to attract higher premiums.
An insurer will work out a premium based on the area, your claims history, and your lifestyle, such as whether or not you are a smoker, have children, or are rarely at home. The cost will also depend on the level of cover you need and any add-ons.
Taking out too much cover means you could be overpaying, but too little cover may mean some key features aren't protected. When figuring out how much buildings insurance to buy, you need to calculate how much it would cost to rebuild your home from scratch. This isn't always straightforward, but using the Building Cost Information Service calculator can make it easier.
Contents insurance is simpler, as you just work out the cost of replacing your valuable personal items.
How to cut your insurance costs and find the best deal
Making your home safer – by installing security devices like burglar and smoke alarms and high-quality window and door locks, for example – can reduce your premiums, said the ABI.
These safety features offer other financial benefits, said Money.co.uk, as keeping your home secure will reduce the likelihood that you need to make a claim, "which will help you build a no-claims bonus".
It may also be worth changing how often you pay for insurance. Interest is "typically charged" with monthly premiums, said Go.Compare, and this "could be more than 30%", depending on the insurer.
Increasing the excess you are willing to pay if you make a claim can also reduce your premium, added Confused.com, but "make sure you're comfortable with paying the amount you set" if there is an incident.
Be sure to opt out of auto-renewals. It is vital to shop around, said The HomeOwners Alliance, as insurers "make a fortune out of apathy" and could hike your premiums without you even noticing.
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Marc Shoffman is an NCTJ-qualified award-winning freelance journalist, specialising in business, property and personal finance. He has a BA in multimedia journalism from Bournemouth University and a master’s in financial journalism from City University, London. His career began at FT Business trade publication Financial Adviser, during the 2008 banking crash. In 2013, he moved to MailOnline’s personal finance section This is Money, where he covered topics ranging from mortgages and pensions to investments and even a bit of Bitcoin. Since going freelance in 2016, his work has appeared in MoneyWeek, The Times, The Mail on Sunday and on the i news site.
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