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Buildings insurance: Many think that the full value of the property needs to be covered. This is not the case. You only need to cover the rebuild value, which is usually substantially less. This figure can be obtained from the valuation report conducted by the valuer. If you are not sure of this figure, contact your solicitor and they should be able to help. Importantly, if your property is a leasehold property, it will likely be the Freeholder's responsibility to ensure that the building has adequate cover.
Contents insurance: Ensure that you choose a level of cover that is suited to your particular needs. Do not cover yourself for the current cost of your contents, but rather the amount it would cost to replace them
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Reducing versus Level term cover: Reducing term policies mean that the amount of cover you receive will reduce every year. This is normally the most appropriate form of cover for those with repayment mortgages, as the amount you owe your lender reduces every year. The premiums are usually cheaper with Reducing term cover. Inversely, Level term policies remain steady, meaning that the amount your policy covers will remain constant. Obviously, this is normally the most appropriate cover for those with interest-only mortgages.
Guaranteed versus Reviewable premiums: Guaranteed premiums are guaranteed to remain constant during the lifetime of the policy. Reviewable premiums give the insurer the right to update your premiums periodically should your health decline in the future. Policies with reviewable premiums usually start off cheaper, but obviously there can be more security with Guaranteed premiums.
Amount of Cover: Of course a good starting point for the amount of cover required is the amount you owe on your mortgage. You will also want to add in any redemption penalties that you would incur for paying off the mortgage. This figure can be found in section 10 of any mortgage illustration that you receive.