Home Insurance, Buildings Insurance Explained

There are two types of home insurance, buildings and contents insurance. If your house is made uninhabitable or needs to be rebuilt due to storm, flood or fire then your buildings insurance would cover your financial losses.

Mortgage providers will usually insist that you have buildings insurance because the loan is based on the fact that they can repossess your house if you are unable to pay. There are many policies with different levels of cover available but normally cheaper policies offer less financial protection in the event of disaster with smaller payouts and fewer expenses covered.

All buildings insurance policies ought to cover the actual structure of your house and should include all the things that would not come with you when you move house, such as your bathroom fixtures and fitted kitchen cabinets. Garages, greenhouses and sheds are included in most buildings insurance policies, but plants, fences and boundary walls may not be.

Do be sure that your policy covers the cost of completely rebuilding your house, including any amendments you have made. Make sure that you tell your insurer if you make any significant improvements to your home, for example the building of an extension. Your buildings insurance premium will be calculated based on the condition the insurer knew your home to be in, and any claims you are awarded will be based on this.

Under insurance, when the amount you receive does not cover your losses, can be a terrible financial blow, so make sure that you carefully consider the level of cover you require. Prices can differ greatly so do shop around.

A lot of home insurance providers offer discounts if you buy both your buildings and contents insurance from the same company. Contents insurance is for all the items that are not permanent fixtures in your home, such as white goods and furniture. The test is whether you would take the items with you when you moved, for example you would not take the wallpaper but you would take the curtains.

If you are renting, your landlord is responsible for obtaining buildings insurance, but your own possessions will not be covered. To insure your own things, you should take out a separate contents insurance policy.

If your house is thought to be at particular risk, perhaps due to previous incidents of flooding, then your buildings insurance premium will probably be higher. Some companies may actually refuse to insure you. If you fall into this category you may need to approach a specialist buildings insurance company that deals with high risk properties. Be prepared for a higher premium, and do seek advice about steps that could be taken to prevent future flooding and to reduce your insurance costs.

With Kwik Fit Insurance house insurance, your home and your treasured possessions will be well-protected from the unexpected.