The Insurance Everyone Should Have: A Guide

Accidents happen, and problems occur that are not your fault, but that have a big knock-on effect on how you live your life, whether that is a small thing or a big one. Insurance can help. Having the right kinds of insurance to cover you for anything that might go wrong can seem like an unnecessary expense, but it is far better to have the insurance and not need it, than not to have it and then require it. Therefore, it’s something that needs to be added to your budget.

We’ve put together a list of the most important insurances to have. Read through and make sure that you’ve got a policy for each that will cover you for any eventuality.


Home Insurance

Home insurance is a legal requirement if you have a mortgage, so in many cases, this is one type of insurance that you simply can’t do without. There are two types of ‘home insurance’ that tend to fall under one umbrella, but they can be bought separately, or individually if you only want one of them (for example, if you are renting your home).


  1. Building Insurance

Building insurance will cover the cost of most of the major repairs that might been to be done around your property. It deals with the structure of your home itself, and it is this that the mortgage providers are most interested in. If there is damage due to weather, fire, or subsidence, for example, this insurance will pay for some or all of the repairs.

General wear and tear won’t come under this type of insurance, and neither will accidents around the home unless you have a policy that specifically mentions it (or you can add it on depending on your insurance provider).


  1. Contents Insurance

Although having contents insurance is not a legal requirement, it is certainly worth paying out for. If you were to be burgled, or your home was damaged or even destroyed by fire or flooding, for example, the contents insurance will cover everything inside it such as your furniture, electrical equipment, even your clothing, and cash.

Car Insurance

Car insurance is another type of insurance that you cannot be without if you are driving around on the UK’s roads. This is another legal requirement, and if you are driving without insurance, you can lose your license or even your car. You will definitely have a fine to pay, and points added to your license. Car insurance protects you and your vehicle if you were to be in an accident, not only paying for the cost of repairs, but providing another vehicle if yours is written off (or the money to purchase one), and helping with personal injury claims.

There are three types of car insurance, and you should research each one to determine which suits you and your budget the best.


  1. Third Party

Third party car insurance will only cover other people if you are involved in an accident, although it will also cover anyone in the car with you. If your car is damaged or stolen, you will need to pay for the repairs or replacement yourself.


  1. Third Party, Fire, and Theft

As with standard third party insurance, this will cover the third party if you are involved in an accident or property damage. However, it will also cover your vehicle if it is stolen or set on fire – or both.


  1. Fully Comprehensive

Fully comprehensive car insurance covers everything mentioned above, but it will also cover any damage that occurs to your own car.

Pet Insurance

One dilemma for pet owners is whether to risk going without pet insurance, as the total amount paid can amount to a considerable expense over the life of your dearest furry friend. Do you need it? In short, yes. Although it is not a legal requirement of owning a pet, it can save you a huge amount in the long run if your dog, cat, or other gets injured or becomes unwell. Vets’ bills can really mount up, especially if a lot of investigation is needed or there is a broken limb involved. Although a monthly contribution is a bit of a pain, it pales into insignificance in comparison with the many thousands it can cost to operate on your little friend. On top of that, as the years creep up on them and they need long term medication – this can really make a dent in your monthly budget.

Pet insurance will cover all of these problems. You may need to pay out first and then claim the money back, or you could go straight through your insurance company; this will depend on the vet’s own policy. However, what is clear is that you won’t be out of pocket and your pet can be treated properly.


Life Insurance

If you were no longer around, how would your partner, spouse, or children manage financially? Having life insurance, although perhaps not pleasant to think about, will mean that they are provided for – your mortgage could be paid off, for example, or they might receive a lump sum to help them manage without your income.

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