Buildings vs. Contents Insurance: What’s the Difference?

What Is Buildings Insurance?

Buildings insurance is a type of home insurance. It protects the structure of your home. This means it covers parts like walls, roofs, floors, and fixed kitchens or bathrooms. If your home is damaged by fire, floods, or other dangers, your insurer will pay for the repairs or even help rebuild your home.

What Does Buildings Insurance Cover?

A buildings insurance policy typically covers:

• Structure of your property: This means your walls, roofs, floors, and ceilings.
• Permanent fixtures: This includes fitted kitchens, built-in wardrobes, and bathroom suites.
• Outbuildings: These are your garages, sheds, and greenhouses.
• External structures: This covers things like gates, fences, and driveways. (Note: some policies might not cover these.)
• Alternative accommodation: If your home is not livable, your insurer might help pay for another place to stay.
• Accidental damage cover(if included): This covers unexpected damages to the buildings cover, like a burst pipe or a damaged roof.

Do You Need Buildings Insurance?

If you own your home completely, it’s not required by law to have buildings insurance. However, getting it is a good idea. If you have a mortgage, most mortgage lenders will require you to have buildings insurance cover as a condition of your loan.

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What Is Contents Insurance?

Contents insurance keeps safe the value of your possessions at home. It covers items like furniture, electronics, clothing, and jewellery. If your things are damaged, lost, or stolen, this insurance helps you receive compensation from your insurer.

What Does Contents Insurance Cover?

A contents insurance policy typically covers:

• Furniture and home appliances: You can include things like sofas, beds, dining tables, TVs, and refrigerators.
• Personal belongings: This means your clothing, gadgets, and jewellery.
• Valuable items: Some insurance plans cover single items up to a limit. Others require you to list high-value items separately.
• Theft and accidental damage: This covers items that get stolen or damaged by accident, if you have accidental damage cover.
• Home emergency cover: Some plans give extra help, like locksmith services, if you lock yourself out.

Do You Need Contents Insurance?

Contents insuranceis not mandatory, but it is a good idea. It helps protect the value of your possessions. If you are a landlord, you do not need insurance for your tenants’ belongings. However, tenants should get their own policy.

What Are the Key Differences Between Buildings and Contents Insurance?

1. What They Cover

• Buildings insuranceprotects the structure of your home.
• Contents insurance protects the value of your possessions inside your home.

2. Who Needs It?

• Buildings insurance is often required by mortgage lenders.
• Contents insurance is not a must, but it is a good idea for both homeowners and renters.

3. Policy Costs

Buildings insurance often costs more. This is because it helps pay for fixing damage to the building itself.

• The cost of contents insurance can change depending on the value of your belongings. It also changes if you choose extra options like accidental damage cover.

Can You Get Combined Buildings and Contents Insurance?

Yes, many home insurance plans cover both buildings and contents insurance. This can help you save money, as companies often offer discounts for combining these coverages. Still, it’s important to compare different plans and check for any exclusions.

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What Factors Affect the Cost of Home Insurance?

1. Number of Rooms

Larger homes that have more rooms often cost more to insure.

2. Location

Areas that have more crime or higher risks of flooding may lead to higher home insurance costs.

3. Value of Your Possessions

Using a calculator helps you find out the value of your possessions. This way, you can ensure that you have enough coverage.

4. Excess Amount

A higher excess is the money you pay before your insurer covers a claim. Paying a higher excess can help reduce your premium.

5. Home Security Measures

Adding alarms, security cameras, and strong locks can lower the costs of home insurance.

When Should You Get Both Buildings and Contents Insurance?

You should consider getting both policies if:

• You own your home and want full protection for the structure of your property and everything inside it.
• You have a mortgage since mortgage lenders often require buildings insurance.
• You own valuable items and want to protect them with contents insurance.

FAQs About Buildings and Contents Insurance