Building and contents insurance isn’t compulsory, (although some mortgage lenders will require it) yet it is an important step in protecting your home. This way you know you’re covered financially should disaster ever strike? Of course, it’s worth knowing a little more about these two policies, and what they each cover.
Building insurance covers you for the cost of repairs to your home, or even rebuilding it, if it is damaged. Common causes of building damage include flooding, fire, vandalism, or weather damage. Building insurance will provide you with the money to cover the costs of repairing or rebuilding your home should it be damaged or destroyed. This can also extend to garages, garden sheds and other additions to your property, but it’s worth knowing each policy is slightly different, so be sure you get one which is right for your home.
If you don’t own your home then generally the building insurance will be taken care of by the landlord. However, you will still want to consider contents insurance in order to protect the things that belong to you.
Contents insurance ensures you are covered for the cost of your belongings within the home, in case of theft or damage. (Generally building and contents insurance will each offer cover for the same causes.)
When arranging contents insurance, make sure you are covering the correct costs of what you own. Consider every item in each room of your home, and how much each of them would cost to replace. It will likely be more than you think! Of course, not all your belongings will be covered; particularly valuable or high-cost items will often need separate cover, so make sure you keep this in mind as well.
Your policy can either cover the costs of replacing or repairing damaged and destroyed items of property; or you can pay less for a policy which will take wear and tear of your items into account when calculating their value.
You can also reduce the cost of your insurance policies by ensuring your home is well protected from the risks in the first place. Doing things like installing a theft alarm and a smoke alarm can make a big difference. Once you have the right insurance policy for your needs, you’ll know that if the unexpected ever happened, you will be able to afford the costs. And having that peace of mind is priceless.
Article publié pour la première fois le 01/11/2011