Everything you need to know about household content insurance & more
Understanding the difference between home content insurance and building insurance on your policy is a must. Helping you to make the right decision when it comes to choosing your cover.
You don’t want to be caught out by assuming that the protection of your building is sufficient in unforeseen circumstances. Know that you may need household content insurance in addition to building insurance.
With the number of insurance policies out there, things can get a little complicated.
Not everyone has the time to read the finer details of each policy, either. We are going to make your lives a little easier by taking any confusion out of the equation. For each insurance type, we will look at:
- Explaining each insurance option
- Understanding how the cover works
- Looking at when to claim, on what
Take the time to understand each aspect of your insurance policy. As understanding, each component could save you from becoming unstuck, when it comes time to submit a claim.
A good example would be a person renting a flat. They would only need household contents insurance as buildings cover falls under the responsibility of the landlord. Let’s look at each option in detail.
What is content insurance?
Content insurance refers to the actual content within your household, that can be removed or replaced. This type of cover ensures the protection of these loose items in case of a claim. Things that are typically taken with you when you move houses.
Each insurer has its specific list of items that they cover. Read the finer details to make sure there are no surprises on your policy.
What is building insurance?
Building insurance is very similar to household content insurance but is for permanent fixtures. This policy covers the financial cost of repairing any damage to the physical structure of your home.
Think about things like your fitted kitchen, walls, ceilings, doors, windows, and external structures, such as sheds and garages. Remember that insurance cover is dependent on your insurer and their terms and conditions.
Calculating content insurance
How do you know how much to insure when it comes to contents? Simple, most insurance companies allow you to cover everything, no exceptions. When looking to include content cover, look at what it would cost you to replace, if you had to re-buy everything again tomorrow.
It may feel difficult, depending on the amount of stuff you own, so we have made it easier;
- List each room in your household
- Walk-through each room, listing your items
- Add a price tag to each item identified
- The value should be as close to the amount paid
- The value should be what you would spend replacing the item
Spend time and attention to what items in your home you would want to replace. Once you have a total in mind, you will need to give this to your insurance company. They will then let you know what your monthly premium will be to ensure that you can replace the items.
Depending on the insurer, household content will even cover sheds in your back garden! Know that sometimes there are certain items that you will take with your when you leave your dwelling, for example cell phones. These items should be insured more specifically and won’t be covered under household insurance should the loss happen away from home.
Calculating building insurance
Insurance companies calculate buildings insurance on the rebuild cost of your property, not the retail value. Understanding the difference between rebuild and retail is vital to know. Your home needs insurance that will cover the amount of repairing any / all damages.
A good idea would be to have your house evaluated by a professional regularly. Think about what it would cost if you had to rebuild everything from scratch.
Don’t leave it to chance. Having insurance that is not covering your property at rebuild value, before the damage, may end you in hot water. Insurance is not about market value; it’s about rebuilding your home. You don’t want to have half a house.
Cases for a Content Insurance Claim
We never expect to have to make an insurance claim. Don’t end up regretting that you don’t have the right insurance cover. Think about everyday situations and what you would do if you didn’t have protection. Think about, almost any case that results in a non-permanent object being damaged or destroyed;
Make sure that you read the small print and individually list items that are allowed on your policy, to avoid disappointment.
Cases for building insurance claims
When looking at content insurance and the instances for claims, buildings insurance claims are very similar. There are some additions to the list above, which include;
- Falling trees
- Arson attempts
There are also some exceptions to your building cover policy, which are insurer dependent. Exceptions include wear and tear, as well as things like your swimming pool not being covered. You can, however, choose to add this to your policy for an additional fee on your monthly premium.
Consulting with your insurance broker to gain the knowledge of each policy can go a long way in ensuring that you have the right cover.
With every bit of household content insurance and buildings cover mastered, you can get ahead of any surprises when you claim.