In an ideal world, you’d never have to claim on any of your insurance policies. Your house would never flood, you’d never be broken into and your property would be immune to the power of wind and fire. In reality however, most homeowners will have to make a claim at some point in their lives. When the time comes, having the right insurance policy in place will be worth its weight in gold.
In order to ensure you have the correct protection, you need to understand exactly what your existing policy does and doesn’t cover. Although different policies can vary, we’re taking a look at the parts of your property generally covered by home insurance.
When buying a home insurance policy, it’s important to understand the difference between buildings insurance and contents cover. As @CitizensAdvice says:
“Buildings insurance covers the cost of rebuilding your home if it’s damaged or destroyed. It’s usually compulsory if you’re planning to buy your home with a mortgage and you may not be able to get one unless you take out buildings insurance.”
If you have buildings insurance, your policy will pay out if part of your property falls down, if it catches fire or if it’s damaged in a storm, earthquake or flood. If the structure of your property is damaged in a break-in or an attempted break in, or if it’s vandalised, your insurance should also pay out.
Contents cover, on the other hand, insures the belongings that are inside your property. So if your computer, clothes, furnishings or other personal items are damaged or destroyed by a natural disaster, accident or careless friend, your insurer will cover the cost of replacement. Unlike buildings insurance, contents cover isn’t mandatory, however it’s a very good idea to take out a policy to protect you in case of disaster.
The exact scope of your contents cover will be determined by your insurer, so it’s important to check the fine print carefully before you sign on the dotted line. In general, you’ll need to take out additional cover if you want your garden to be included in the policy. You can also pay extra to insure things you take out of the house like jewellery, money and your phone. If you have any high value items in your home, it’s a good idea to take out a separate policy just to protect them.
As home insurance policies vary, it’s essential you check exactly what it is you’re signing up for before you agree your contract. To make sure you find the insurance that’s right for you, talk to one of our expert advisors today.
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Written by: Editorial Team