The differences between building and contents insurance

Although some people may have overlooked it, insurance is considered essential for homeowners and renters across the UK. But not everyone needs exactly the same type of policy, and the needs of those who actually own property and those who are renters are often different. There are two common types of home insurance, called buildings and contents insurance, and some people will need one but not the other, while others may need both. There are also various coverage extras and methods of getting a good deal that could be of use to anyone looking for a new policy.

Buildings insurance covers the actual structure of the house, i.e. the bricks and mortar of your house, as well as what is commonly referred to as ‘fixtures and fittings’, i.e. toilet facilities, bathroom and kitchen units and lighting fixtures. Things like conservatories, outside garden walls and fences, plus a driveway and gates, may also be covered under some policies, but if you are in any doubt, the best option might be to check the policy and ask the relevant insurance company.

If you are renting a house or apartment, the actual owner of the property must have coverage for the building, which means renters typically only need contents insurance that covers the property they own in the building. A mortgage provider might try to sell a buildings insurance deal to someone applying for a home loan with them, but they are not required to pursue this option and may want to get a quote from another company. Those who own and live in the same building generally opt for joint building and contents insurance from the same company.

Generally speaking, a buildings insurance deal will pay for a variety of circumstances, some of which are present in virtually every policy, while others are not as common and may depend on the house itself and where it is located. Typically, a policy will protect against damage from fire, flood, theft, and vandalism. Accidental damage to things like pipes and glass in windows may also be covered, although internal glass, ie in doors, may not be covered. One thing that has surprised many DIY enthusiasts over the years is that damage caused by hobbyist home improvements may not be covered by a normal policy.

Contents insurance covers the actual general belongings in the home, from books and CDs to a collection of jewelry, appliances, clothing, and cookware. Normally all of this will be covered up to a set limit and there may be a single item limit, which means that the insurer will not pay more than a certain level for a single item. You will be required to effectively estimate the total cash value of what is in your home and it might pay to get an accurate appraisal to avoid the possibility of being over or under insured. Again, your belongings will be protected against theft, fire, flood damage in most cases and there’s usually the option of insuring a section of items against accidental damage, which means you’ll get paid if you spill a cup of coffee. on a laptop, for example.

The cost of building and contents insurance can be kept low by making sure security is tight at home. So you could try upgrading your door locks and installing an alarm and security lights, for example, all of which could be reduced in a number of policies.