Home insurance is a “No Brainer” you have to have it! You owe it to yourself and your family to make sure your home and its contents can, in the main, be replaced if a disaster happens. No home insurance will off course replace items that are by their nature irreplaceable, such as family heirlooms but it can pay for your house to be rebuilt and the contents replaced.But what are the chances of a disaster? This is normally very low but it can depend on a lot on where you live. For example, if you live near a river or on a cliff top or in a part of town that suffers from burglaries your premium would be higher than average. If you have a full security system installed that will reduce home insurance costs. Not living near an active volcano would probably reduce your costs too! So really it is common sense and you have to undertake your own risk assessment to decide if your property is worth of being insured and the likelihood of loss.
An example to keep you aware is a property that is in a low-risk area was flooded by a freak storm, and a wall was pushed over by the force of the water. The assessors who visited the property said there was a one in 120 years risk of it happening again! The point, therefore, is any property should be insured however small the risk might be because you cannot judge the vagaries of nature.
You can insure both your house (bricks and mortar) and your contents in a joint policy or separately. It is easier to control if you keep them together but there are so many different deals that you may find it cheaper to split them.
Always look around for the best deals recent examples of searching found a 30% saving by combining the policies. It takes a bit of time but you need to be aware that cost is directly connected to the benefits you receive! In other words, you need to be sure that in your contents policy for example that you will receive “new for old” in the event of a payout. This means that the carpet you have had for several years is replaced with a similarly priced new one rather than only get the value of the old carpets worth (before damage). This means that there is usually an excess to pay when making a claim, again search this out. Your home insurance needs to take account of the rebuilding costs not including the land, as that will still be there in most cases although an earthquake would probably eliminate that one!
So the best advice is to shop around using brokers both online and offline and try to avoid a policy attached to your mortgage deal as they can sometimes (not always) be expensive. Make sure you are adequately covered, in the event of making a claim on your home insurance. If you search properly for the best value for money deals you will find it money well spent.