With so many home insurance products on the market the choice can be baffling, and with big differences in the price of policies and the protection they give you, take time to think about your needs rather than just going for the cheapest deal available.

Most mortgage providers will require you to have buildings insurance to cover the cost of rebuilding your home in case of disaster. Mortgage companies lend you money in the knowledge that if for any reason you fail to make your payments they can take your house as an asset, so for this reason they will insist that the asset is insured.

You should make sure that your buildings cover includes the cost of alternative accommodation in the event that your home is uninhabitable. It is also worth checking whether the policy covers the cost of rebuilding or if it gives the market value of your property.

As well as the physical structure like the walls and roof, your buildings insurance policy should cover any permanent fixtures in your home, including for example your bathroom suite, fitted kitchen cabinets and garden shed. Essentially, the things that you would not or could not normally take with you if you moved home should be covered by your buildings insurance policy.

Things in your house that you would expect to take with you if you moved, like furniture, electrical goods and clothing, have to be insured separately with a contents insurance policy. Mortgage companies do not require you to have contents insurance, but most policies are fairly cheap and could mean the difference between a big financial problem and a slight inconvenience if your things are damaged or stolen.

If you have anything that is especially valuable in your home then a standard contents insurance policy may not include them. On the other hand, some policies will even cover you in the event that someone is injured in your home due to some failure on your part to maintain the property.

As with buildings insurance, the cheaper contents insurance policies do not always give the best value. For example, cheaper policies will give you indemnity insurance, meaning they will give you the market value of the goods that you are claiming for, but that might be a lot less than what you will have to pay to get new replacements. Unless you would be content to replace a damaged rug with a second hand one for example, it may be worth paying a little extra for your contents insurance to get a new for old policy.

Contents and Buildings insurance will both normally cover you for damage or destruction of your property by flood, storms, fire, theft and vandalism, but higher levels of cover are available if you feel that it is necessary, for example accidental damage. If you have children in the home this can be very useful and well worth the extra premium.

There are a lot of price comparison websites that will help you to find the best deal, so you are sure to find a policy with the appropriate level of cover to meet your needs.

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