Building and Contents Insurance
Home insurance comes in two types: buildings and contents insurance. Buildings insurance covers damage to the structure of your home itself and will typically cover any damage caused by fire, subsidence, lightning, storms, falling trees and branches, earthquake, flooding or a vehicle crashing into the property. Contents insurance will cover all of the items in the house which are not fixed to the property which include furniture, jewellery, appliances and clothing.
Buildings and contents insurance is placed under the bracket of home insurance. It is a combined insurance which is essential for all mortgaged homes. A mortgage lender will require you to have buildings insurance which is up to at least, the value of the mortgage.
What is covered?
Buildings insurance cover will pay out when damage to the structure of the house is inflicted, even leading up to a point where damage is so bad it needs to be completely rebuilt. Contents insurance policies will now even cover things such as the contents of a refrigerator and freezer.
The cheapest kind of contents insurance is indemnity insurance which means the insurer will replace exactly what was damaged or stolen, so if you claim for something which was five years old, you will be compensated to the value of the 5 year old item. A more expensive but much more popular choice is the “new for old” option. This gives a brand new replacement of whatever gets damaged or stolen, no matter how old it is. As with building insurance any claim must be the result of something which was out of your control.
Should I buy my insurance from my mortgage provider?
It is not always the best or cheapest option to buy the insurance from your mortgage lender; it can pay to shop around. And that is where HomeQuoteDirect are happy to help. Our knowledge of home insurance, whether it is buildings, contents or both combined makes HomeQuoteDirect the first choice to find the cheapest policy which suits all your needs. Either fill in our simple online form or speak to one of our experts who will be happy to answer any questions regarding your home insurance.