First-Time Buyer Insurance in Wales: What You Need to Know Before You Get the Keys

You’ve saved for years, found your perfect property, and are getting ready to become a homeowner for the first time. But buying your first home isn’t just about getting the mortgage approved — it’s also about protecting what’s likely to be your biggest investment.

That’s where home insurance comes in. It’s not optional, it’s essential. Let’s break down what first-time buyer insurance actually is, what it covers, and what to look out for if you’re buying a home in Wales.

What does home insurance do?

If you’ve been renting up until now, insurance might not be something you’ve had to think about — your landlord’s policy covered the building, and your contents policy (if you had one) covered your personal items.

But as a homeowner, you now become legally and financially responsible for the property itself. Home insurance protects you against damage, loss, or disaster — giving you peace of mind that, if the worst happens, you won’t face financial ruin.

There are two main types of home insurance you need to understand:

1. Buildings Insurance

This protects the structure of your property — everything that can’t be taken with you. That includes:

• Walls and roofs

• Doors and windows

• Pipes and drains

• Permanent fixtures such as kitchens and bathrooms

Buildings insurance covers damage caused by events like fire, flooding, storms, burst pipes, or subsidence.

Mortgage requirement:If you’re buying with a mortgage (as most first-time buyers do), your lender will require buildings insurance to be in place from the date you exchange contracts — not completion day.

Without it, the mortgage funds won’t be released. It’s that critical.

2. Contents Insurance

Contents insurance covers your personal belongings — the things you’d take with you if you moved house. Think:

• Furniture

• Electronics (TVs, laptops, tablets)

• Clothing and jewellery

• Sentimental items

It covers loss or damage from theft, fire, flood, or accidental damage (depending on your policy).

Some policies also protect belongings outside the home — for example, if your laptop is stolen from your car or you lose your phone while travelling.

Smart Move tip:Take photos of key items when you move in. If you ever need to make a claim, it’s proof of ownership and condition.

What isn’t covered?

Home insurance isn’t a “cover everything” product. Every policy has exclusions, and many first-time buyers are caught out by what isn’t included.

Common exclusions include:

Wear and Tear

Insurance won’t cover gradual or age-related issues like:

• Damp or mould

• Subsidence caused by poor maintenance

• Corrosion, rust, or vermin damage

These are considered part of your responsibility as a homeowner.

Accidental Damage

Accidental damage — like spilling paint on the carpet or cracking a window — is not always included in standard policies.

You usually have to add it as an optional extra. It’s worth doing, especially if you have children or pets.

Pet Damage

Sadly, if your dog chews through the sofa or your cat scratches up the carpets, most insurers won’t cover it. Prevention and training are your best protection here.

Negligence or Carelessness

If a break-in occurs because you left the front door unlocked or a window open, your insurer may refuse the claim. Always keep your property secure and maintain working locks and alarms.

Flooding

Wales has many properties in or near flood-risk zones, especially along coastal and riverside areas. Most standard buildings insurance includes flood cover, but if your home is in a high-risk area, your insurer may charge more or require a specialist policy.

Check your flood risk on naturalresources.wales/flooding and consider:

• Signing up for free flood alerts

• Installing flood boards or air-brick covers

• Raising electrics or appliances where possible

Japanese Knotweed

Damage caused by invasive plants like Japanese Knotweed is not covered under standard policies. Lenders and insurers expect you to have any Knotweed professionally treated before completion.

DIY or Poor Workmanship

If you damage something while attempting major DIY (e.g. knocking through a wall or plumbing a bathroom yourself), your insurer won’t cover it. Always use qualified tradespeople — and keep receipts as proof of work.

How much does home insurance cost in Wales?

Costs vary by location, rebuild value, and risk profile.

Buildings insurance

Premiums are based on how much it would cost to completely rebuild your home, not its market value.For most Welsh homes, rebuild values range between £150,000–£300,000 depending on size and construction type.

Contents insurance

Premiums depend on the total value of your possessions and the crime rate in your area. Urban postcodes (like Cardiff or Newport city centre) may be higher than rural areas due to higher theft risk.

You can get an accurate rebuild figure using the RICS online rebuild calculator or by asking your mortgage valuer or surveyor.

How to pay less for your home insurance

Everyone wants to save money — here’s how to keep your premiums low without cutting corners:

Improve your home security

• Change locks after moving in

• Fit approved window and door locks

• Install motion lights and alarms

• Consider a smart security camera (many insurers give discounts)

Buy buildings + contents together Insurers often offer discounts when you combine both policies — and it simplifies renewals and claims.

Pay annually, not monthly If you can afford to, pay your policy in full. Monthly payments often include a form of interest.

Shop around Compare quotes from at least three insurers. Look beyond price — check cover levels, excess amounts, and what extras are included.

Limit claims Frequent small claims can increase your premiums. For minor damage, it can sometimes be cheaper long term to pay out of pocket and keep your “no-claims” record intact.

When should you get insured?

You should have buildings insurance in place by exchange of contracts — your lender will insist on it. Don’t leave it until completion day.

If you’re also taking out contents insurance, arrange this before moving day. Even professional removals companies can damage or lose items in transit, so check whether their insurance covers your belongings or whether you should add a separate policy for the move.

What does the best first-time buyer insurance look like?

There’s no single “best” policy — it depends on:

• The type, age, and location of your property

• Whether it’s a flat, terrace, or detached home

• Flood or subsidence risk

• The total value of your belongings

What matters most is that it:

• Meets your lender’s requirements

• Covers both structure and contents appropriately

• Fits your budget

• Comes from a reputable, FCA-regulated insurer or broker

Smart Move tip: Bundle your protection

Through Smart Move, you can arrange both mortgage and insurance support in one place — ensuring your cover meets your lender’s criteria and starts on the exact date you need it.

Schedule a free call with our Mortgage & Insurance Advisor We’ll review your mortgage offer, check lender conditions, and help you choose the right buildings and contents insurance for your first home in Wales.

Quick Recap: First-Time Buyer Insurance in Wales

Type	Covers	Required by Mortgage Lender?	Notes
Buildings Insurance	Structure: walls, roof, windows, fixtures	✅ Yes	Must be in place from exchange
Contents Insurance	Belongings and valuables	❌ Optional but strongly advised	Can include accidental damage add-ons
Flood Cover	Usually part of buildings insurance	⚠️ Check if you’re in flood zone	May need specialist policy
Accidental Damage	Optional extra for one-off mishaps	—	Review exclusions carefully

Ready to protect your new home?

Don’t let insurance jargon or missed deadlines delay your completion. Martin & Co can help you find a competitive, compliant policy that protects your investment — and keeps your mortgage offer valid.

Book your free consultation today Let’s make sure you and your first home in Wales are fully covered.