Home insurance is, as explained in the article on insurance tied to mortgages, the only policy that's actually mandatory if you have a mortgaged home, but comparing solely on price, without checking the actual coverage, can leave you underprotected right when you need it most.
The insured capital for the building itself: don't underestimate it
The building structure must be insured for a capital amount sufficient to cover the full cost of rebuilding the home in the event of a major loss, not simply the purchase price or the market value of the property (which includes the value of the land, irrelevant to rebuilding costs). Insuring for an insufficient amount can mean that, in the event of a total loss, you won't receive enough compensation to rebuild your home completely.
Contents: check that the insured amount matches your actual belongings
Contents (furniture, appliances, personal belongings) should also be insured for an amount that reasonably reflects the real value of your possessions, reviewing it periodically as you acquire new items, rather than leaving the amount set when you first took out the policy unchanged indefinitely.
The coverage that really makes the difference between policies
Beyond basic coverage (fire, water damage, theft), check whether the policy includes civil liability (for damage you might cause to third parties from your home), home assistance (emergency locksmith, plumbing), and specific coverage relevant to your situation (extreme weather, vandalism, appliance breakdown).
Deductibles: the cost you bear yourself before the insurance kicks in
The deductible is the amount you must cover out of pocket before the insurance covers the rest of the loss. Policies with lower premiums often make up for that lower cost with higher deductibles, which can mean that, in the event of a moderate loss, you end up paying a significant share out of pocket despite having insurance in place.
Exclusions: what the policy never covers
Always check the exclusions section, since it determines which situations are expressly left out of coverage regardless of the rest of the policy's terms (for example, certain types of progressive damp damage, or damage resulting from a proven lack of home maintenance).
Don't limit yourself to comparing the annual price
Comparing only the price of the premium, without checking insured capital amounts, included coverage, and applicable deductibles, is the most common way to end up underinsured without realizing it until you actually need to use the insurance.
Plan your complete housing budget
Our mortgage calculator helps you work out your monthly payment, to which you should add the estimated cost of home insurance within your total housing budget.