Home Insurance, Buildings Insurance Explained
Author: kwik fitinsurance
Category: Insurance
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There are two types of home insurance, buildings and contents insurance. If your house is made uninhabitable or needs to be rebuilt due to storm, flood or fire then your buildings insurance would cover your financial losses.
Most mortgage companies will require you to have buildings insurance because the money they lend you is safe so long as they can repossess your house if you are default on your payments. Different policies offer many different levels of cover, but as a general rule the cheaper policies tend to offer less financial protection by covering fewer expenses and offering lower maximum payments.
All buildings insurance policies ought to cover the actual structure of your house and should include all the things that would not come with you when you move house, such as your bathroom fixtures and fitted kitchen cabinets. Garages, greenhouses and sheds are included in most buildings insurance policies, but plants, fences and boundary walls may not be.
You should make sure that your policy covers the cost of totally rebuilding your home, including any improvements you have made. Make sure that you inform your insurer if you make improvements to your home, for example the addition of a conservatory. Your buildings insurance will be based on the last known condition your home was in, and any sums paid out by the insurer will reflect that.
Under insurance, when the amount you receive does not cover your losses, can be a terrible financial blow, so make sure that you carefully consider the level of cover you require. Prices can differ greatly so do shop around.
Most home insurance providers offer combined buildings and contents insurance which is good value. Contents insurance is for all the items that are not permanent fixtures in your home, such as white goods and furniture.
If you are renting, your landlord is responsible for obtaining buildings insurance, but your own possessions will not be covered. To insure your own things, you should take out a separate contents insurance policy.
If your home is perceived to be high risk, for example due to a history of flooding, then your premium is likely to be higher and you may struggle to find an insurer. There are specialist buildings insurance companies who deal with high risk properties, so if your home is in that category you may need to look at their products and brace yourself for a bigger bill.
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Keywords: home insurance
View Count: 162
Date Submitted: 6/20/2009
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