Buildings & Contents Insurance
Do You Really Need Buildings & Contents Insurance, or Is One Sufficient?
In a new home or when the calendar points to renewal, the most common action is to agree to a policy of building & contents insurance. Often sold as a single product, many people believe this to be the easiest choice for protecting their home. In lots of cases this is correct. However, for others it might transpire that single policy building & contents insurance would be more practical and cost efficient. Here at Quote Supermarket we are making it easier than ever to assess prices, and exploring the options could save money on those premiums. We know our prices are fantastic – you won’t be disappointed.
What Is Buildings Insurance?
Buildings insurance insures the actual fabric of your home – its physical structure. This means that if it is destroyed or damaged, the costs of repairs and replacements can be covered by your insurance company. Buildings insurance is crucial for landlords and home owners, as they are directly responsible for the structure of the building. Tenants in rented accommodation will likely find that their landlord has this insurance, meaning they do not need an additional policy.
The exception for tenants would concern putting certain structures in the garden, such as a shed. In these cases, it is important to check with the landlord to see whether their existing policy will cover this addition, or if a separate insurance arrangement will need to be made. In a standard policy of buildings insurance, the damage of subsidence, flooding, fire, vandalism, water damage or lightening impact would normally be covered. Theft will also be covered if it affects the structure, such as where a window has been removed, but theft of the building’s contents is a separate issue.
What Is Contents Insurance?
Contents insurance covers the items that are inside the home. Sometimes, it will also cover the items that are owned by any guests or visitors, so long as the damage that occurs to these items happens when they are on the premises. Most people need this type of insurance, particularly given how expensive our essential gadgets have become and how reliant people are on items like computers, laptops and smartphones in their day to day lives.
There are two main types of contents insurance, with very different regulations. The first is ‘like for like’ cover, which means that in the event of a claim the customer will receive the value of the damaged item as it is at that time. The other is ‘new for old’ and is generally more popular, meaning you will receive the value of the item as it was when you purchased it. This distinction can be complicated to understand but is incredibly important when making decisions regarding choosing a policy.
For example, if you purchase a television for £500, it might be worth no more than £150 after six years. If your television then breaks, you would only receive £150 on a ‘like for like’ policy, whereas you would receive £500 on a ‘new for old’ policy. To find coverage that suits your needs, give us a call at Quote Supermarket today and we can explain all the details to you or simply apply for a quote online.
