Buildings and Contents Insurance

Article created by Christian Duncan, Director – Mortgage and Protection Adviser
Last updated 11th August 2023

Navigating through the minefield of home insurance can be a daunting task. From understanding the difference between buildings and contents insurance to deciding on the best home insurance company, there is a lot to take in. This comprehensive guide answers some commonly asked questions about home insurance and offers practical tips to help you make informed decisions.

What is Home Insurance?

Home insurance, often referred to as homeowners insurance, is a form of property insurance that protects your home from potential damages caused by a variety of factors like fire, flood, or theft. It includes both buildings insurance, which covers the structure of your home and any permanent fixtures, and contents insurance, which covers your personal belongings inside the property.  If you have a mortgage against your property, you can expect buildings insurance to be compulsory as part of your terms and conditions.  

Purpose of Home Insurance

The primary purpose of home insurance is to provide financial protection against potential losses. These can result from natural disasters, break-ins, or accidental damages. With home insurance in place, you can receive financial aid for repairs or replacements, avoiding major out-of-pocket expenses.

Importance of Home Insurance

Home insurance is all about assurance and protection. It safeguards against unexpected expenses and gives you peace of mind knowing your investment is secure. Having homeowners insurance is not legally mandatory in the UK, but it’s often a requirement from mortgage lenders as it protects their investment too.

How Does Home Insurance Work?

Depending upon your policy, your home insurance could cover both structural damages and loss or damage of personal belongings. You pay a premium, usually monthly, or annually, and in return, the insurance provider promises to cover specific losses if they occur.

Key Considerations When Choosing Home Insurance

Choosing a home insurance policy requires thorough research to ensure you are adequately covered.  Why not book a call with one of our advisers and let them do all the hard work free of charge. 

Tips on Home Insurance

1. Understand Your Coverage: Know precisely what your policy covers. It’s essential to understand the details so you can make the right claims if necessary.
2. Regularly Review Your Policy: Your living condition changes over time, and so should your insurance. Regularly reviewing and adjusting your policy ensures you’re not left underinsured or paying for unnecessary coverage.
3. Compile a Home Inventory: Keeping an updated record of your belongings can speed up the claims process if you ever need to file one.

In Summary

home insurance provides vital protection for your house and contents – protecting your investment and providing you peace of mind. While it can seem complex, by understanding the basics and keeping the mentioned tips in mind, you can choose the right policy that suits your requirements.

With the increasing number of providers in the market, it’s important that you understand your options and the associated costs.   Remember, having home insurance is not just about meeting lender requirements; it’s about protecting one of your most valuable assets. So, make sure you consider all aspects before making a purchase.

No matter which provider you choose, the most important thing is that you feel secure knowing your home is protected should the unexpected occur.  Book a call with one of our trust advisers here.