Homeowners and landlords may want to combine a buildings insurance policy with a contents insurance policy, so that all their possessions are covered in the event of accidental or malicious damage or destruction.
Buildings insurance is not only a necessity for homeowners with a mortgage; it's a requirement. The amount of coverage should allow for the assessed value of rebuilding the damaged or destroyed property. For permanent structures, this number is found in the valuation report, which can be provided by your local estate agency. If you are under-insured, it can affect coverage in the event of damage. It is important your buildings are covered from the first day you accept responsibility or ownership for your property.
Buildings insurance is available for both structural aspects of your property, as well as permanent fittings and fixtures. This often includes sub-structures such as garages, storage sheds, greenhouses, fences, and driveways. Premium costs are dependent upon type of property, where it is located, and how big it is.
Often mortgage companies direct homeowners towards providers that can cover the owner's needs, but it pays to look around for the best rate.
Even if you do not have a mortgage, it is recommended that you have buildings insurance to cover the possible hefty costs if something were to damage your property. Coverage usually includes loss or damage as a result of weather (storms, wind, flooding, lightning, extreme cold), natural disasters, purposeful harm (theft, vandalism, arson), and accidents (fire among others).
Often, your policy can be extended to cover interior damage, or can be combined with a contents policy to protect your personal items.
Contents insurance is a necessity for both homeowners and tenants, to cover the value of possessions or property in the event of damage, destruction, or loss. This includes all non-permanent structures and fixtures in your home, as well as furniture, appliances, electronics, and some valuable. Items of very high value (such as jewelery or some electronics) may need to be insured separately to achieve complete coverage of their value. Although coverage is not required, it is advisable.
Your possessions are covered through contents insurance, as well as belongings of your family that live in the same household. Others may be included, dependent upon the specific insurance policy.
Landlords should make sure that any possessions that are included in home rentals are covered by contents insurance. Tenants should have coverage for all of their non-rented possessions.
Contents insurance is valid in case of weather-related damage, fire, and criminal activities such as theft and vandalism. Although accidental damage is not usually covered, policies can be extended so that "accidental damage and all risks" are included. This may be a good option for high-risk individuals and families, such as those with children or pets, or those that travel with items of value. The policy should cover the cost of replacing your possessions, not the current value of the items. By spending just a little time to compare quotes, you can save a lot of money and trouble on premiums.