Buildings insurance
This is designed to cover the amount it would cost to rebuild your home and other buildings - perhaps due to a fire or flood. The cover typically includes your garage, as well as driveways and fixtures and fittings, such as the central heating system, kitchen and bathroom.

Buildings insurance isn't just a good idea - your mortgage lender will insist on it.

Contents insurance
This covers the things you would take with you if moved house - such as your furniture, clothes and personal possessions.

It's designed to pay out if you unexpectedly lose or damage your things - or if they're stolen. There are usually limits on the value of items covered and you often have to pay an excess for any claims.

Most policies allow you to pay extra for accidental damage cover - or for covered items while they're outside the home. On top of this, many contents policies usually offer legal expenses cover which could pay the legal bills if you're involved in a dispute.

What's covered?
It's always a good idea to check exactly what's covered. For example, many policies won't pay out if your property is unoccupied beyond a certain length of time. Damage caused by rot, woodworm or burst pipes is also usually not covered.

And if you sub-let your property, you may not be covered for any theft. Like we said, it definitely makes sense to check.

How to cut your home insurance premiums

• Get secure - fit an approved burglar alarm and security locks to get a discount Increasing your voluntary excess - but make sure you can afford to pay the excess if you have to claim
• Be neighbourly - you can usually cut your premiums if you live in a Neighbourhood Watch area. If you don't, why not set one up?
• Mix and match - you don't have to buy buildings and contents insurance from the same Ask for a discount - although changing your policy could save you money, check if your insurer offers a loyalty or renewal discount
• Ask for a discount - although changing your policy could save you money, check if your insurer offers a loyalty or renewal discount