Household Budgeting – Which Insurance is Essential?

The modern world is awash with financial pitfalls and services that require monthly payments.

Whether that is a subscription to a streaming service, a popular gaming app or a wider household expense, it seems someone is trying to tie you down to a yearly subscription or monthly fee at every turn.

Here at Tuppenys Fireplace, I am always looking to help you save money, be it with top deals or cutting out unnecessary spending.

One area of the home in which you could spend more than you need is household insurance. There is insurance for everything now, from your building and possessions to your plumbing and heating.

But how much of it do you really need, and is it cost-effective?

wooden house and small succulent pot plant with coins and financial paperwork.

Buildings Insurance

Buildings insurance tends to cover the fabric of your home, the bricks and mortar, roof, and general structure.

It is the type of cover that is usually mandatory when you get a mortgage as a provider often insists on buildings cover to protect their investment, for the duration of the mortgage.

If you live in a rental property, you will not need buildings insurance as it will be the responsibility of the property owner.

If you do not have a mortgage on your property, but you are the owner, then buildings cover is certainly worthwhile, because it will protect you against damage from storms and other unforeseen events.

The Independent explains that a third of UK properties experience damage at some point, which underlines the importance of buildings cover.

file dividers for various household bills.

Contents Insurance

Contents insurance protects the items that you own within your property and it is the most varied type of insurance policy you can take out on your home.

It can cover a multitude of different possessions and have several different factors built into it.

For instance, some policies will protect your mobile phone if you are out of the property, whilst others may not protect your mobile electrical devices at all.

Contents insurance is applicable to anybody, even if you are in a rental property, as it is your responsibility to protect your personal items.

In fact, Citizen’s Advice recommends you add a contents policy to your household protection plan, protecting against fire and theft.

Some contents policies will even protect you against accidental damage, for instance, if your flat screen TV were to fall off the wall and onto the floor your insurance may cover you for a new one.

The key to contents insurance is knowing how much protection you need. You will have to add up the estimated value of the items you own, and often specify single items worth more than a set amount, usually £1,000 or more.

2 older peoples hands working out finances with paperwork and calculator.

Services Insurance

Services insurance is relatively new on the market, but it is becoming increasingly popular.

You can purchase protection for the full range of services coming into your home, your boiler, plumbing and drainage and even your electrics.

UK home assistance provider HomeServe detail how some policies come in at less than £1 per month, making them a cost-effective part of your wider home protection plan.

These policies can often be tailored to your specific needs too, so understanding your property is paramount.

Knowing how old your plumbing, boiler and electrics are will help you decide if this insurance is required, and understanding the cost of certain repairs should the worst happen will rubber-stamp your decision.

3 small piles of coins with green shoots atop.


Protecting your home is an essential part of life, whether you are renting or whether you own.

Understanding your property and the risks posed to it will dictate exactly how much insurance you require, and of which type.

Always check your chosen policy carefully and always understand your exact needs as a homeowner before placing an order. Also, always ensure that any outlay fits within your financial budget.

Do not overstretch yourself protecting your home, but at the same time do not leave yourself exposed should the worst happen.

This is a collaborative post

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Last Updated on 7th September 2022 by Emma

About Emma

I'm here to help you become confident in making the best money decisions for you and your family. Frugal living has changed my life, let me help you change yours.

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