My First Property

What Is Buildings And Contents Insurance?

When getting home insurance you will see buildings and contents insurance is placed under it.

It is a combined insurance that will cover and replace damage that might occur to your home or contents. It is possible to get the two insurances separate but they normally come combined.

Buildings insurance

This insurance covers your house if there is a disaster. It will cover a badly damaged house that even needs to be rebuilt. The disaster must be out of your control though like a storm, a flood or fire and any third party damage.

Most mortgage providers will insist you take this cover as it is like a security for the loan they have given you.

Contents Insurance

This insurance covers the items in your house like furniture and jewellery. It will cover appliances too. Contents insurance will cover you in the same situations as building insurance and includes theft.

Having this insurance is sometimes compulsory with some mortgage suppliers and its important you take it. There are different types of cover with these insurances.

You can get unlimited cover which will mean there is an automatic payout. 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

As with everything look around and search for deals and offers and do your research.

More first-time house buying articles:

  1. The Best Websites to Visit to Find your First Home
  2. What is the cost of a house survey?
  3. Repayment and Interest Only Mortgages
  4. Why you should visit a house at different times of day
  5. What to do during a Bidding War


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