For those seeking to buy a new home the sheer volume of information you need to digest from the different types of mortgages available to your legal and insurance obligations can be overwhelming. And when it comes to understanding what all the different house insurance terms mean, knowing your buildings insurance from your contents insurance can require some time consuming research and homework. However it is crucial to get a clear understanding of exactly what you do and do not need in order to get the best policy for building and contents insurance and ensure you don't hand over hard-earned cash for premiums you can live without. Which policies do you legally need to have? And how much cover do you actually need? Follow this jargon-busting guide.....
'Home insurance' covers two types of policies – buildings insurance and contents insurance

Homeowners are required by some mortgage lenders to invest in a policy to protect the building itself as part of the conditions of granting the mortgage loan. However, you are not obliged to buy your building insurance policy from them, and it is certainly a good idea to investigate whether you can secure a cheaper deal if you take your business elsewhere. Consider buying a combined Buildings and Contents Home Insurance policy as this could work out cheaper and easier, and cut down on admin and paperwork.
If you're not a homeowner, and rent your house or flat, you only need to consider contents insurance to cover your personal belongings and valuables. It's your landlord's responsibility to insure the building.

In order to get the best price and ensure that all your possessions and high-value items are adequately covered against fire, burglary and other accidents in the home, you need to do a thorough stock take. ts insurance to cover your personal belongings and valuables. It's your landlord's responsibility to insure the building.

• Sum-insured policies
This is the most popular type of policy and 'sum-insured' means the total value that your policy covers you for, based on what it would cost you to replace all of your possessions. You can opt for either ‘new-for-old’ cover or ‘indemnity’ cover, which insures items for the amount that they are currently worth. To calculate the sum insured, you need to add up the value of everything you own. But beware – this must be as truthful and accurate as possible. Set the total value too low and you will be under-insured – and claims you might make will not be paid in full. And there’s no point in over-insuring as this means you’ll simply pay a higher premium than you need and over-valuing key items is counter-productive as your insurer will check true prices before paying out any claim.

• How to value your possessions
Take a calculator, a notepad and a pen (or if you want to be more high-tech use a spreadsheet on your computer) and carefully list all of your high-value items piece by piece. While this can be time-consuming, it will ensure you get the right cover without paying over the odds. Insurers refer to key household possessions as high-risk or high-value and generally have set price limits regarding the amount they will pay out in the event you make a successful claim.
If you're taking out new-for-old cover, you need to list the replacement value of these items. High-risk, high-value items, include all your electrical equipment – TVs, computers, stereos etc – cameras; watches and jewellery; valuable pictures and works of art; antiques; high-value collectors’ items, and sports gear such as surf boards and golf clubs. To check latest prices, simply take a look online for guidance.

• Proof and paperwork
It pays to keep hold of your receipts as your insurer will probably request proof of ownership before processing any claim for a replacement. It’s also a good idea to write down a list of all the makes, models and serial numbers - not just for the benefit of the insurers but also to assist the police in re-tracing items in the event that they’re stolen. If you’ve since lost receipts for major items such as TVs and camcorders, take a digital photo of the items in your home.

An 'excess' is the amount you agree to pay if you make a successful claim. You may get a discount on your premiums if you volunteer to pay an additional excess.
'Accidental damage cover' applies to household insurance that covers you for damage in your home of an accidental nature, such as knocking over a can of paint on the carpet when you're redecorating. Some polices provide this as standard, others require an additional premium.

With Barclays the deal really adds up. You'll get a 10% discount when you buy a contents only, buildings only, or combined buildings and contents home insurance policy online.