Different Types of Home Insurance

Home is where the heart is, but it’s also where we keep everything that we own and love, so protecting it is second nature. With that in mind, when it comes to choosing a home insurance policy, make sure you shop around and get the best deal.

If you’re a first time buyer or you just don’t know what sort of coverage you need, here’s a quick guide to the different types of home insurance here in the UK.

Buildings Insurance: Building insurance cover your house itself; the structure of your home is vital and it’s compulsory to have it. Buildings insurance will cover your home if it is damaged and will cover the rebuilding costs if your home is completely destroyed, such as in a house fire. Most people cannot afford to do this themselves, so buildings insurance is absolutely vital to take out when you are buying your home. Building insurance will also cover any permanent fixtures in your home; so built in kitchens, bathrooms and bedroom furniture would also be covered.

Typically, buildings insurance policies will cover damage caused by the following:

● Fire, smoke or explosions
● Storm and flood damage (if you live in a flood prone area, you will need additional coverage)
● Burst pipes or water damage (such as leaking)
● Subsidence, heave or landslip
● Vandalism or third party damage to your property

Contents Insurance

Contents Insurance is very different to buildings insurance and covers your personal belongings, and unlike buildings insurance it is not compulsory, but it is well worth having. In the event of a break in or fire you would be required to replace all of your contents out of your own pocket.

If you are a homeowner, you can get cheaper combined buildings and contents insurance policies, such as the ones from Endsleigh Insurance. Contents Insurance will generally cover anything that is moveable, including furniture such as beds and sofas.

Most insurers now replace items on a ‘new for old’ basis; generally this will cover the cost of replacing the item that is lost or damaged with a brand new one.