Finance Editor, Kael Tripton Ltd - LBS MBA - Verified against FCA Handbook: 14 June 2026
Quick answer
ICOBS 4 requires home insurers to give you an Insurance Product Information Document (IPID) before you are bound by the contract. The IPID is a standardised 2-page summary of key features, exclusions and excess. If the insurer fails to provide it, the 14-day cooling-off period may not have started.
What Must Your Home Insurer Tell You Before You Buy Under ICOBS 4?
Direct answer
What information must a home insurer give me before I buy?
Under ICOBS 4 (handbook.fca.org.uk/handbook/ICOBS/4/), the insurer must provide an IPID before you are bound by the contract. The IPID is a standardised 2-page summary covering what is insured, exclusions, excess, cancellation rights and complaints contact. It must be clear, fair and not misleading.
FCA Handbook - ICOBS 4.1.1 - Verbatim Rule Text Source: handbook.fca.org.uk
A firm must take reasonable steps to communicate information to a customer in a way which is clear, fair and not misleading.
Request the IPID before purchase
Ask the insurer or broker for the IPID before accepting any quote. They must provide it.
Read the exclusions section
The IPID lists key exclusions. Common home insurance exclusions: wear and tear, damage from pests, poor maintenance, unoccupancy beyond 30 days.
Check the excess levels
The IPID shows compulsory and voluntary excess. The total excess is both combined.
Verify the sum insured
For buildings insurance the sum insured should be the rebuild cost. For contents it should be the total replacement cost at new-for-old prices.
Keep the IPID
Store it with your policy schedule. If the insurer later denies a claim citing a term not in the IPID, the IPID is evidence of what you understood.
| IPID section | What to check | Common issues |
|---|---|---|
| What is insured | Key covers included | Confirm both buildings and contents if needed |
| What is not insured | Exclusions list | Wear and tear, unoccupancy, business use often excluded |
| Excess | Compulsory and voluntary per claim | High excesses reduce effective cover value |
| Cancellation | 14-day right and mid-term terms | Check mid-term cancellation fees |
| Complaints | Complaints contact and FOS reference | Must reference FOS and FCA |
Related KT guides
Frequently Asked Questions
What must a home insurer tell me before I buy?
Under ICOBS 4, insurers must provide clear, fair and not misleading information before the policy is concluded. As of June 2026, this includes the Insurance Product Information Document (IPID) -- a standardised 2-page summary of key features, exclusions, sum insured and excess. The IPID must be provided before the consumer is bound by the contract.
What is an Insurance Product Information Document?
The IPID is a standardised pre-sale disclosure document required under ICOBS 4 and the Insurance Distribution Directive. It must cover: what is insured, what is not insured, the excess, obligations during the policy, when and how to cancel, and complaints contact. It must be no more than 2 pages of A4. All FCA-authorised home insurers must provide an IPID before sale.
Can I cancel if the insurer did not give me an IPID?
If the insurer failed to provide an IPID before you were bound by the contract, the 14-day cooling-off period under ICOBS 7 may not have started, as the right to cancel must be disclosed before the period begins. You can also complain about the ICOBS 4 breach through the insurer's complaints process and the FOS.
Does the IPID replace the full policy document?
No. The IPID is a summary only. The full policy wording remains the legally binding contract. If there is a conflict between the IPID and the policy wording, the full policy wording prevails. Always read the full policy before purchasing.
What is the duty to disclose when buying home insurance?
Under ICOBS 4 and the Consumer Insurance (Disclosure and Representations) Act 2012, consumers must take reasonable care not to make a misrepresentation. The insurer must ask clear questions -- if questions are unclear, the consumer's duty is reduced. Deliberate or reckless misrepresentation allows the insurer to void the policy.
Primary sources
Kael Tripton Ltd is registered with the Information Commissioner's Office under registration number ZC135439.
