Homeowners vs household contents insurance, what is the difference? Before you go on holiday, make sure you are covered, so there are no nasty surprises.
As we wind down from a tough 2020 and a year we won’t forget, we are all looking to get back to normality and plan for the festive season.
Planning a summer festive season break? Ensure there are no nasty surprises on your return. Remember to check your Homeowners and householder insurance policy.
It is important to remember that household and homeowners insurance can include home insurance and household content insurance. They might sound similar but mean very different things.
Protecting your house aka Homeowners and Household insurance.
Homeowners insurance is a type of property insurance that covers a private residence or home. This can also be referred to as buildings cover.
Your home is exposed to numerous potential risks daily which is why it is important to have insurance that protect your house. It provides financial protection for your building or dwelling.
Your Householders insurance and what it covers will be listed in your policy and important that you are aware of what is covered especially when making a claim.
Household Content Insurance and what it means
Now that we have explained buildings/property insurance let us look at householders content insurance. This type of insurance covers all our favourite & most prized possessions in our home, including everything from
- personal belongings
- your owned clothing
- furniture & appliances
When you decide to take out content insurance for your household, it is important to make a list of all your possessions and value them as close to the replacement value as possible.
If you are not sure do not hesitate to contact your broker who will assist with the process and answer any questions you have.
Do we need both types of insurance?
We can see that both are related to our home but are specific to different elements inside and outside the home. When owning a home, it is advisable to have both Homeowners insurance and householders contents insurance so that you are always covered for the unknown.
If you are a renter, however, and do not own the specific home or flat it is not necessary to have house (building) insurance. This is covered by our landlord.
In the event of damage to the internal or external fixtures the landlord will deal with such instances directly with their insurance company.
It is advisable to have householders insurance, to protect yourself against items stolen or lost inside your rented home or flat. Your belongings are not the responsibility of your landlord.
The ins and outs of each cover.
#Rodel4U provides everything you need to know about household insurance. Take the time to understand each, especially at this time of the year. Think about those unforeseen instances that could occur like:
- a tree falling down & damaging your window in a summer storm
- a burglary while you are away on holiday or before Santa arrives
- a burst geyser that decides that new years morning was the time to rain
A claim is never expected, wanted, or anticipated. Remember to avoid those “unexpected” holiday blues!
Understanding the difference between Homeowners (building) and Householders (contents) insurance is a must. You do not want leave for that much anticipated holiday vacation thinking your house and contents are safe, only to return to a nasty surprise.
Policies can be tricky, and we often do not read the fine print. Let us look each cover and what it includes
- Homeowners (Building) Insurance
- all your permanent fixturesg. windows, walls, doors, roof etc
- any financial costs to repair any peril related to the physical structure of your home
- Householders Content Insurance
- all the items in your home that can be removed or replaced e.g. If you turned house upside down and anything that falls out is classified as Householders or content.
If theft or damage occurs, while you are out enjoying your family holiday, you want to feel reassured that you are in fact covered for replacement.
What is not covered in Homeowners insurance?
As mentioned, it is important to understand your policy and what is covered and what is not. Damage to property through neglect or failure to maintain a property such as termites and insect damage, rust, rot and mould IS NOT covered.
Do not let the complicated jargon of insurance policies confuse you. Contact your Rodel4U approved broker to assist you with explaining all the finer details and answer all your questions.
Enjoy the festive season and a much-needed break from a somewhat different and exhausting year. With Rodel4U you are rest assured your home and much-loved possessions are safe.
