Buildings and contents insurance: Do you know the difference? | The Savings Wife

Friday, April 5, 2013

Buildings and contents insurance: Do you know the difference?

Whether you’re buying or renting a property, it’s important to know what types of home insurance and contents insurance you need. The two main types available are buildings and contents cover, but what’s the difference between the two and which one could benefit you?

Buildings insurance

The insurance market is competitive these days and with so many policies available it can be hard to see the wood for the trees. The important thing to remember is that buildings insurance covers the physical structure of your home including the roof, walls, windows and interior fittings. It protects you from things outside of your control such as fires, floods, storms, falling trees or subsidence and is an essential purchase for any responsible homeowner.

While many disasters are covered as standard, you might have to pay more for additional cover which could include gas boiler breakdown or damage, annual boiler servicing, gas and electrical failure, emergency plumbing, damage to water pipes, radiators and central heating systems, roof damage or pest infestations. All insurance policies are different, however, so find the best buildings insurancequotes online and read the terms and conditions carefully.

As a rule, your house should be insured for the amount it would cost to rebuild it from scratch (including materials, architects and laborers) and not the estimated resale value. This is a common mistake, so don’t hesitate to call in a surveyor if you need help. They’ll assist you with the figures and ensure you have the adequate protection for your residence.

Contents insurance

Unlike buildings insurance, contents cover protects personal possessions and essential assets within the house including jewelry and furniture. It’s an essential product for homeowners, but is also ideal for tenants who are looking for additional financial security. As many people underestimate the value of their possessions, it’s important to calculate the worth of your goods properly. If you are under insured, your policy may become invalid, so make sure the total is as accurate as possible. Moreover, remember to update your policy if you buy something new that’s worth a lot of money. Your premium may rise a little, but at least you’ll receive a pay out if it goes walkabout.

Everything from buildings insurance to contents insurance for tenants is important, so find a cost-
effective policy to suit you and keep hold of your hard-earned cash.

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