WHAT IS HOME INSURANCE?
Buying a house is a major financial investment. For most people, their home is one of the most valuable assets that they have. In fact, for most people it is the fulfillment of their dreams and the fruit of their hard work. Therefore, it makes financial sense to protect what we have worked hard for. Hence, protecting your home and your possessions is just as important as protecting yourself and your income. In addition, it is important to insure your property for the full cost of reconstruction should you need to rebuild your home in the future. You should also take into consideration the cost of replacing your belongings in the event that they are damaged, destroyed or stolen. Make sure that your Home Insurance Building and Content policy is adequate to cover all the costs.
Home Insurance Building and Content is a type of cover that is designed to protect an individual’s home against damage to the house itself, or to possessions in the home. It provides cover against accidents in the home or on the property. There are different types of home insurance. Depending on the type of house or any special circumstances, you might need something a bit more specialised. Below outlines a standard buildings and contents policy. Depending on your preferences, you can get a cover for either or both at the same time.
WHAT IS BUILDINGS INSURANCE?
Buildings Insurance covers the permanent commodities of your building. It covers any damage to the actual structure of your home such as the roof, floor and walls. It gives you peace of mind that you will be financially protected should the unexpected happen. When you own a home or building, you have to look after it and repair it when it gets damaged. If you are renting out a property, it is your responsibility as the lessor to get insurance, not the tenants.
Sometimes, something adverse or devastating such as fire, subsidence, flood, and other natural events happen. The cost of damage repair increases over time. You will struggle financially if you suddenly need to spend a considerable amount of money for something unexpected. Buildings Insurance covers your property’s bricks and mortar. As well as its permanent fittings and fixtures, but not the contents. This usually extends to outdoor buildings as well, for example: garages, sheds and greenhouses, but not fences, walls and gates. It may cover water leakage from pipes. It may also cover oil leaks from the heating system. As well as damage caused by a storm, earthquake or flood. It may also cover damage caused by nature, such as a fallen tree.
WHAT IS CONTENTS INSURANCE?
Contents Insurance covers the possessions belonging to you and to close family members who live with you. It pays for damage to, or loss of an individual’s personal possessions located within that individual’s home. Contents insurance is usually sold alongside home insurance, but it can also be purchased as a stand-alone policy. There are various benefits available based on what you require. Some policies will allow you to include your personal belongings for when you are out and about. It also includes items like your mobile phone, wallet and cash.
Think about what will happen if you lost everything you own due to flood, fire or robbery. Imagine the sheer amount of the stuff that you own. You will realise just how much it would cost to replace everything. Usually tens of thousands of pounds. How will you cope when that happens? It can cost a lot of money to replace even just the essential items in your home. You will need to spend a huge amount of your savings to replace all your possessions.
Even when you are renting, it is just as important to get Contents Insurance. For example, if your mobile phone, television or laptop gets stolen, your landlord will not be liable for it. Your landlord will not replace anything you own that gets stolen. Therefore, it is still important to cover your possessions even when you are renting.