Insuring Your Home: Types Of Cover

By Author: Foster carr
Total Articles: 30
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Buildings and contents insurance are both types of home insurance. Buildings insurance covers you against financial losses if the structure or permanent fixtures of your house are damaged, and contents insurance is for your belongings that would go with you if you moved. There are many different levels of cover, so here are some things to be aware of when choosing a policy.

In buildings insurance it is of utmost importance that the full cost of rebuilding your property is covered and not just the market value. The land your house is built on is unlikely to be damaged by fire or flood, and it is often cheaper to rebuild a house on the existing plot than to buy another. Bear in mind that similar houses just a few streets apart may be worth different amounts, but rebuilding costs will be the same.

For contents insurance you must ensure that you do not under insure, meaning that the maximum your insurer will pay does not cover your losses. The greater that maximum the higher the premium, but it can be a false economy to under insure and if the worst should happen you could be seriously out of pocket.

To get ...
... an accurate idea of how much cover you require, take an inventory and dont forget to include homemade items and gifts. Work out the rough value of each, and consider how much they would cost to buy new. If you pay extra for a new for old policy you will get the cost of new replacement items, otherwise you will only get the value of your old used ones which could be a lot less.

You may decide to opt for cover for the things that you take out and about with you. Mobile phones, laptops and jewellery can be covered by your house insurance even if they are lost or damaged away from the home. Also think about the contents of your garden, greenhouse and shed, are your tools and garden furniture covered?

Not all building insurance offers the same level of cover. Along with your house, check whether your buildings insurance covers you against damage to greenhouses, sheds and garages as these items can be costly to replace.

If you make any changes to your property, such as an extension or loft conversion, make sure that you inform your insurer and update your policy, otherwise you may lose out if your improvements are subsequently damaged or destroyed.

Look out for discounts if you buy your contents and buildings insurance from the same provider. Do shop around and remember that the cheapest cover may not be the best value, and for a slight increase in premium you may be very grateful for the additional cover should you be unlucky enough to need it.

It only takes a few moments to get our contents insurance quotes online with Kwik Fit Home Insurance.