Buildings and contents insurance are the two elements that go to make up comprehensive home insurance, protecting on the one hand the structure of the property and on the other, its contents.
The mortgage lender will usually insist that you take out buildings insurance before they’ll even lend you the money. This is to protect their investment, which is your property, from damage caused by fire, flood, subsidence, and other natural and unforeseeable events that could make a rebuild necessary. The sum assured will be the cost of rebuilding the property.
Household insurance is an absolute necessity these days, and although contents insurance at least is not compulsory, you’d have to be mad not to take it out, unless you live in a fortress or don’t care about what happens to your personal possessions.
Contents insurance will cover loss and damage to your possessions through events beyond your control, but for a bit extra on the premiums you can extend it to accidental damage by yourself and other extra forms of cover.
If you’re looking for really cheap house insurance you might opt for the cheapest form of home contents insurance, which is indemnity cover. This however will replace items with their equivalents of the same age rather than new ones, whereas ‘new for old’ contents insurance will get you brand new replacements, and this is the type of house contents insurance preferred by most people.
Travel insurance covers your possessions whilst away on holiday, as home contents insurance will not extend to that, although it will cover your possessions outside of the house in many cases, such as handbags, watches, and jewellery.
Many insurance companies now give homeowners the chance to purchase a joint buildings and contents insurance policy, and the premium is usually discounted as the two are combined. With a combined policy your home is covered for structural damage and your possessions are protected in the event of loss, damage or theft.
Some policies may require you to have a minimum level of security at your home, and often if you have added extras, such as an alarm, you can bring down the cost of your policy. Those who live in areas where thefts are frequent may find that they pay a little more as their possessions are more at risk. If you have some items which are valued highly then you may be required to list these separately on your insurance policy and pay extra to cover them.
It is worth shopping around for a buildings and contents insurance policy as prices will vary widely from company to company. A price comparison website is a good place to start as these will show you prices from a large number of insurance companies at a glance.
All household insurance companies will stipulate that if there are any changes to the use of your home or your personal circumstances that you should inform them immediately, as this could invalidate your policy. It is important to read the small print on all your policies and adhere to any terms and conditions that have been put in place by your insurance company.
These days you’re not at liberty to blast intruders onto your property or set man traps, but there are numerous physical deterrents available in the form of burglar alarms, barbed wire, window bars, and suchlike. You can think of these as the outer defences of your castle. Should they be breached however, the best inner defences to have in place are insurance policies, which will at least get stolen items replaced.
But apart from burglars, the structure of the house itself may be at risk, either from subsidence or some other natural disaster such as a storm or fire. These things happen more often than you may think, and having buildings insurance in place will cover the cost of rebuilding your property if something like this occurs. It will be a condition of getting a mortgage in fact.
Home contents insurance comes in many forms, depending on what level of coverage you want, and it’s necessary to check exactly what you’ll be covered for. If you have a room full of original modern art, for example, you’ll probably need to take out extra levels of cover. Conversely, covering yourself against grand art theft when you only have plastic ducks on the wall may not be such a good idea.
The best way to decide on your contents and buildings insurance provider is to check out some of the insurance comparison websites on the internet, which will highlight any special deals being toted and compares the quality of the different policies on the offer.
Imagine that an unexpected disaster, such as a fire or a flood, befalls your home. The structure of your home, its contents, and all your personal belongings might be destroyed. Although money can never replace the valuable items lost in such a disaster, having the ability to replace life’s basic essentials can help ease the loss.
Basically, a comprehensive home insurance policy offers the most protection possible from such unpredictable disasters. Spending the time to compare home insurance and find affordable house insurance quotes may be the only reason you one day have accommodation after a disaster. Buildings and contents insurance are the best ways to cover your home inside and out, protecting all of your belongings in one convenient package.
Simply phrased, buildings insurance covers the structure of your home and all permanent fixtures within. Sometimes garages, fences, and sheds are also protected from certain disasters under this type of policy. Anything that cannot be removed and taken to a new home, such as toilets and baths, fitted kitchen counters, and physically attached interior decorations, will be reimbursed or replaced by the insurance provider.
Under contents insurance, your smaller, removable items will be covered. The best way to understand what is covered by such an insurance plan is to imagine what you would take with you when you moved. These removable, mobile items are most likely protected by most contents insurance plans.
In both cases, a home insurance plan can save you from expensive replacement costs and serious financial loss in the event of a disaster.
Most homeowners purchase buildings and contents insurance plans without ever planning to need them. No one wants to think about a disaster that could wipe out a home and everything in it, but homeowners must be prepared for such circumstances.
In the event of a disaster, such as a fire, explosion, burglary, tree falling, or flood, it is time to put that home insurance protection plan into use. Most policies have a clause that requires almost immediate claim filing, so make sure you understand the processes of your home insurance provider.
When disaster strikes, you must decide which policy to file the claim with. Anything that is a permanent fixture becomes a buildings insurance claim; damage to smaller, removable items such as televisions and clothing, should be filed under your contents insurance plan. Most insurance companies will send a loss adjustor to your property in response to a major house insurance claim.
Many exclusions exist on house insurance coverage, so consult your policy paperwork or speak with your insurer directly to find out if the damage sustained will be covered. Keep the damaged items and take pictures if possible. Always retain any bills for emergency repairs so that they may be refunded once the claim has been processed. To protect your own interests, you might consider hiring a loss assessor who will serve as a mediator between you and the insurer in the event of a claim.
There are many websites dedicated to offering various types of insurance quotes, but they do not always tell you exactly what is being compared. You may be searching for building insurance, home insurance or content insurance and end up seeing quotes for something other than the type of insurance you actually need.
When buying any type of insurance and home insurance especially, it is vital to know what is and is not covered under the policy. Generalised headings like “Act of God” rarely tell you much. The insurance company will give you a list of what is covered, but you must remember to ask as not all insurance companies are the same.
There are lists of things that are covered by law; add to those common items and you generally come up with a list of the most common items covered on your house insurance policy. For example, on a standard policy you are most likely to receive coverage on the home or building itself, walls, fences, garages and outbuildings (such as sheds).
You will typically be insured against fire, storms, items falling from aircraft, earthquakes, theft, subsidence, vandalism and flood. Some companies do have exclusions based on location, however. Some of the things that are not covered are terrorism, pollution, war, radioactive contamination and pressure waves from an aircraft.
Although one of your important items may not be in your standard insurance policy, you can ask your insurer to add them. Sometimes they can be added for free or perhaps a minimal charge.
While most people recognise that home owners need to have homeowner’s insurance, many are not as aware of the types of ‘special circumstance’ insurance that is available for people and students looking to find a policy that will cover them in non-typical scenarios.
Self-Build
When building a new home, it is important to consider all aspects of the project, including what happens if you or someone else is seriously injured and/or incapacitated. Self-build insurance to consider includes:
• Employers liability insurance; insures you against a friend or volunteer who might make a claim if they are injured; protecting you against any liability as an employer.
• Further liability insurance; protection against any injury to a third-party.
• Public liability insurance; insure against possible claims from passers-by or other members of the public.
• Existing structure; insures that the lender’s interest is noted.
• Contractor disputes; covers any legal expenses regarding contractors or suppliers (e.g., in the case of sub-standard materials or work).
Holiday Home/Expat
If a person spends a lot of time away from their home, a homeowner’s policy can be rendered null and void. Specialist policies ensure you are still covered.
Working from Home
While some insurers automatically cover up to £5,000 of home office equipment, others do not include it. It is important to establish how well you are covered and whether you need an extended policy.
Student Possession
Student policies recognise the unsecured nature of most students’ possessions and are tailored to meet those needs.
When comparing house insurance quotes, the first thing you need to do is to ensure that you are comparing like for like. There are many great comparison sites out there that will do the work for you, but rarely are the results anything more than a generalized quote for whatever type of insurance you are trying to buy, whether it is for home insurance, buildings insurance, contents insurance or combined building and contents insurance. The comparison sites are designed simply to give you an idea of the cost of a premium so that you will go to the insurer directly and ask for a detailed quote designed to fit your needs.
Keep in mind that while buildings insurance is usually required by bank lenders and other companies, contents insurance is not. It is up to you to decide what policies you will buy. Be sure to price each policy separately as well as together to get the best price. After all, we can only expect so much from the cheapest house insurance.
Although comparison websites are great time savers for the consumer, they do not always benefit the insurer. Therefore, some insurers do not choose to participate in comparison sites. It may be due to the specialised nature of their business or some other reason. In any case, it pays to look at the comparison sites, but to also search companies that are not on the sites. Getting recommendations from friends, family and neighbours will also help to steer you in the right direction.
In the rental market many tenants do not realise the importance of having house insurance. Whilst landlords will inevitably be responsible for the upkeep of any property and therefore have appropriate building insurance, they are unlikely to have taken out cover to protect their tenant’s belongings. For this reason it is vitally important that tenants understand that taking out contents insurance is a must.
Living as a tenant is similar to any other household arrangement when it comes to insurance needs. Whilst those renting accommodation do not need to concern themselves about financially protecting the property, it is vital that contents insurance is purchased. Thieves may still break in to properties and steal valuables, and though a landlord could take preventative steps such as installing light sensors and alarms, any financial loss will not be their responsibility. Likewise, if a fire or flood occurs, resulting in the damage and loss of personal possessions, a landlord’s building insurance will not cover items owned by the tenant.
It is therefore vital for all tenants to have appropriate insurance. Talking to a landlord about preventative measures such as installing alarms, locks and sensors can help bring monthly premiums down, and will likely also reassure any landlord that you mean to take care of their property. Meanwhile without needing to buy building insurance as well, tenants can keep costs to a minimum whilst ensuring that their belongings are financially protected.
In order to make a claim for house insurance, you will first need to find the right insurance company. There are many home and contents insurance companies online that will provide you with a quote based on the information that you provide. To find a policy that is right for you, you may wish to compare home insurance companies. There are a wide variety of comparison websites that allow you to obtain and compare quotes in order to find the best deals.
If your home has been broken into or damaged by floods, fire or any other severe weather conditions or accidents, then you will need to make a claim. Before making a claim for home insurance, be sure to check that your policy covers whatever you are claiming for. If it is theft or fire damage, then these are likely to be covered, but it is always a good idea to check what your policy covers.
You will need to contact your insurance company and provide information in order to make a claim for buildings insurance. The process of making a claim will vary depending on which insurance company you have chosen, so if you are unsure of how to make a claim, be sure to visit the company’s website and read through any FAQs or information pages. You may need proof of identity or proof that any items belong to you, so ensure you have receipts or other documents to hand before making your claim.
Some companies may require you to fill out a form to make a claim, whilst others may store details on the computer. If an item is damaged or your property has been damaged as a result of floods or fire, then the damage may have to be assessed by someone from the company so that your claim can be accepted.