What is building insurance?

Buildings insurance covers your house in the event of disaster which means your house needs to be completely or partially rebuilt. The insurance policy will define the events which will be covered usually including:

• Storm or flood
• Fire
• Lightning or explosion
• Falling trees or branches
• Subsidence, drag or landslip
• Breakage of glass or sanitary fittings
• Damage from escaped water or oil
• Shock caused to the house by animals, vehicles or aircraft

Buildings insurance will ensure that most structural fixtures are repaired or rebuilt if necessary usually including:

• Walls, ceilings and roof
• Gates, fences, hedges and footpaths that all lie within the boundaries of your property
• Permanent fixtures and fittings within the house
• Decoration
• Pipes and cables

You will have to have buildings insurance if you want to take out a mortgage on your house.

What is contents insurance?

Contents insurance generally covers all items in your house which are not fixed to the property. This may include furniture, jewellery, appliances, clothing etc. A simple rule is if you could take an item when you move home, it is covered under your contents insurance.

There are two types of contents insurance:

• Indemnity - Indemnity insurance is usually cheaper and will replace exactly what was there before including depreciation.
• New for Old - "New for old" insurance will give you a brand new replacement of whatever is damaged or stolen.

Contents insurance will be defined in each policy but will normally cover you for theft or damage beyond your control including due to:

• Storm or flood
• Fire
• Lightning or explosion
• Falling trees or branches
• Damage from escaped water or oil

With contents insurance, standard cover will only apply to certain items in your house. Typical types of insurance offered are:

• Money within your house, up to £ 500
• Losses on stolen credit cards, up to £500
• Office equipment kept in the house, up to £5,000
• Having new locks fitted if these are broken or damaged, or if keys are lost
• Replacement mirrors or glass broken by accident or through vandalism, full cost covered
• Damage or theft of deeds and other documents within the house, up to £250
• Loss of metered water, up to £1,000
• Damage or theft of satellite equipment, up to £500
• Contents of your freezer, up to £500

If you'd like to know more about building and contents insurance then contact us today or get an online quotation.

Prior Knowledge is an appointed representative of Sesame Ltd. The site is intended for UK consumers only. Principal: A Prior