The Financial Services Compensation Scheme (FSCS) has been set up to protect Home and Car Insurance policies and guarantee payment of claims in the event of the policies' insurer going out of business. 

The FSCS cover compulsory insurance (e.g. Motor Insurance) for 100% of the claim with no upper limit. They also cover other non-compulsory insurances (like Home Insurance) for 90% of the whole claim with no upper limit.

For further information visit http://www.fscs.org.uk