This is designed to protect you against risks of damage to the structure of your property. Among the risks normally covered are fire, flood and storm etc..
If you have a mortgage, your Lender will insist that you have adequate and up-to-date insurance and this will be a condition of the mortgage or loan agreement you have.
If you are buying a property you should ensure that the insurance cover starts from the day you exchange contracts, because from this day you are committed to proceed with the purchase.
In addition to the actual building structure, buildings insurance generally also covers those things that cannot reasonably be removed from the property, such as fitted kitchen, bathroom and bedroom furniture and interior decorations.
You can also choose to include outbuildings, such as garages, sheds and greenhouses.
The risks that you would typically insure against would be damage caused by fire, flood, storm, subsidence, accidental damage and leaking pipes.
The amount of cover should be sufficient to pay for a complete rebuilding of the property – a fire could effectively destroy the house entirely. This would normally be less than the market value of the property. You might also choose to include provision to pay for alternative accommodation in the event that your house requires extensive rebuilding work.
The cost of premiums is normally based upon a number of factors including the type of house (house, bungalow, detached, semi-detached, terraced, flat, maisonette etc), size of property – often calculated according to the number of bedrooms, age, location, market value and construction type (stone, brick etc).
Your home is likely to be your most valuable asset and it is vital that you take prudent steps to protect you investment. Your home is at risk not just from possible damage to the bricks and mortar, but also the risk that you might not be able to keep up the mortgage payments.
Buildings insurance can be taken out as a stand-alone policy or together with Contents insurance as a single Buildings and Contents policy.
Home contents insurance is used to guard against financial loss suffered as a result, for example, of theft, fire, flooding, storms, leaking pipes and accidental damage.
Items typically covered are those that can reasonably be removed from the property – such as furniture, furnishings, household goods, electrical equipment, clothes, personal effects and cash.
Cover can be arranged for items that are taken from the house.
Typically included is liability insurance that would protect you against any claim made against you if a visitor to your property was injured whilst there.
Premiums are based upon a number of factors:
Contents insurance can be taken out as a stand-alone policy or together with Buildings insurance as a single Buildings and Contents policy