Home insurance is a collective term for two different types of cover. However, home insurance policies differ in levels of protection and premium specifics, such as protection for areas including electrical goods and other valuables.

Buildings insurance provides protection of the construction side of your property, helping to cover the re-build cost of your property in event of damage caused by fire or subsidence. The re-build value of your home can usually be found on your mortgage agreement or property deeds.

Contents insurance covers almost everything you take with you when moving house. It is advisable to make a list of the rooms in your house and to notate the value of all the items - from CDs to clothing - contained in each room. Add these individual amounts together and use the total amount to see which contents insurance policy would suit you.

It's always best to double check and to calculate an accurate figure for your buildings and contents insurance before shopping for a home insurance policy, it may be an awkward process but if done correctly can help save money on your premiums.

If you need both buildings and contents insurance, it might be worth shopping around for quotes for both policies. Most insurers do offer separate policies, however whilst one might be cheaper for buildings cover it might not suit your needs when it comes to contents insurance.

All insurance policies protect against the risk of financial loss. However there are steps you can take in order to reduce the risk of damage or loss to your property and possessions. It's best to contact your home insurance provider before getting any security improvements installed on your property as they can give advice on the cost-cutting impact of such improvements.

In part two you can find a handy guide to a few effective measures which, if checked and followed, could lead to a lower house insurance premium.

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