Types of Home Cover

Policy cover

There are two kinds of household insurance policy.

Buildings insurance covers the structure of the home together with its fixtures and fittings.

Contents insurance covers the contents of the home which you would take with you if you moved.

As well as covering you against a stated list of risks (including, for example, fire, subsidence, theft, flood and storm) both kinds of policy provide an important "liability" section. This pays for amounts of money for which you become legally liable.

You don't have to insure your contents and buildings with the same insurance company. The household insurance market is very competitive and it is always worth shopping around. However, using the same company may help to streamline claims handling if you suffer damage to the buildings and their contents.

Buildings Insurance

Many people buy their buildings insurance policy through their building society or lender when they take out their mortgage. Having a suitable insurance policy is a condition of the loan.

You do not have to take out your policy with your building society or lender, unless you have agreed to a special mortgage package which includes insurance.

Contents Insurance

A contents policy covers just about everything you would take with you if you moved. Furniture, furnishings, household goods, kitchen equipment, food and drink, televisions, video, computer and audio equipment, clothing, personal effects, and valuables up to stated limits. Boats, caravans and motor vehicles are usually insured separately.