Home insurance is the name used for two types of insurance – buildings and contents – you can buy the policies individually or combined into one. Buildings insurance is for the structure of your home and permanent fixtures and fittings, whereas contents insurance is for anything that is inside your home.
The simple way of under-standing what is covered by each policy is this…
If you could turn your home upside down and shake it, everything that fell out is contents, everything that remains is buildings. The only exception to this is fitted carpets which usually (but not always) come under your contents policy.
This is a policy for the structure of your home such as the roof, walls and the floor, plus anything fixed to your home such as your fitted kitchen or bathroom. It typically covers anything that you wouldn’t take from the home if you moved. It usually covers damage too and the policy should pay the cost for repairing or rebuilding your home if it is damaged.
All policies are different and you need to read the small print but typically they will provide cover for fire, water, smoke, storm and flood damage as well as tree, car and vandal damage. Policies are also available that cover any other structures on your plot such as your garage if required.
Don’t expect a policy to pay out for everything, natural wear and tear is not covered. You’ll need to read your policy details but typically you won’t be covered if your home is left empty for long periods; you haven’t conducted proper maintenance (e.g. allowed your gutters to leak for a prolonged period and caused damage to your home); or if your fences blow down in the wind.
This is a policy that covers everything inside your home that you would typically take with you if you moved home.
All policies are different and you need to read the small print but typically they will provide cover for goods items such as furniture, electrical goods, jewellery, clothes and your general belongings. Your carpets are usually included in this policy.
Don’t expect a policy to pay out for everything, natural wear and tear is not covered and anything covered by a Building Insurance policy is not included. Typically valuable items are only covered up to a certain value; you can discuss individual valuable items such as a diamond ring with your policy provider and ensure that they are included by paying extra on a premium. Think about your possessions. If any single item is typically worth over £1500, mention it to your insurer. Your computer is not usually part of the policy if it is damaged by a virus.
This guide is produced for entertainment purposes only. We recommend you consult a reputable Insurance Broker.