“In the event of complete damage to your home from serious events such as fire and explosion, the buildings insurance will pay for the full costs of rebuilding your home from the ground up”
What is buildings and contents insurance?
Buildings and Contents insurance is a combined insurance product, designed to cover any damage experienced to the house or it’s contents, which will also include loss from theft and fire. To safeguard the property as security for the mortgage loan, it will almost certainly be a mandatory requirement of your lender to have in place an appropriate and valid buildings insurance at all times during the term of the mortgage, the contents element will be optional and not usually a requirement of your lender.
Even if you do not own a home or have a mortgage, the majority of home dwellers will still require some form of buildings insurance. It is not necessary to buy building and contents together as they can be bought separately, but it is common for people to buy these together so that they are covered for there costly personal possessions aswell as their building or home. The benefit of buying building and contents insurance together is that it is normal for the insurer the apply on average a 10-15% discount to the premium.
Buildings Insurance only
This type of cover as mentioned before will be a mandatory insurance required by your lender, to protect themselves from the fall in value of the property effecting the adequacy of the security in place if they ever had to recover there outlay for the loan. The Buildings Insurance covers accidental damage to your home from events such as burst pipes, water leaks, storm or flood, major and minor fires, water leaks, subsidence, break ins, vandalism, 3rd party damage, smoke damage or explosions etc. The cover will pay for the cost of repairing the building and restoring it to the previous condition. Policies can even cover the re-homing costs of residents while work is being carried out on the home. In the event of complete damage to your home from serious events such as fire and explosion, the buildings insurance will pay for the full costs of rebuilding your home from the ground up, but most claims are to cover the more minor cases such as window breakages, burst pipes and water damage. The damage must not have been self inflicted and must have been totally out of your control.
Contents Insurance only
This type of insurance covers covers items such as jewellery, furniture, clothing, laptops, household appliances and clothing. The items covered can be classed as any items that are not fixed to the property and that you could not physically take away with you if the property was sold. Depending on the level of cover you purchase, the policy will replace items on a like for like basis, meaning that if you were to claim for a damaged washing machine that was 2 years old, you would receive a replacement washing machine that was 2 years old, or a cheque to cover the cost of a market value machine 2 years old. There are a more expensive policies offered that replace old items for new ones if they are damaged or stolen. The situations in which you can claim are almost identical to buildings insurances, but theft is always included with contents insurance , and again the circumstances must have been out of your control.There are also some policies available that extend cover to items allowing them to be be taken out of the home, such as bikes and laptops, but this will kind of cover will be in addition to the standard premium.
Is this type of insurance necessary?
Very few lenders will supply a mortgage with Buildings insurance being an optional arrangement. Banks and Building societies will do everything in their power to make sure that the money they are lending is secured against a property or an asset, which can be relied upon to be sold off to recover their costs and loan amount if ever the path of repossession had to be taken. Making having an appropriate and valid Building Insurance in place at all times a compulsory lending condition, helps the lenders to make sure that the property or asset is not in disrepair and is in its best condition, so that if ever a sale had to be made to recover the outstanding debt, they could do so easily and in swift manner with maximum return on the sale.
Other than a mandatory request by lenders to have Building Insurance, most people regard this type of insurance as being very important, as repair costs for any major damage to a property can be quite substantial, and therefore is taken out by most homeowners and residents to protect themselves from these costs.
How I can Help
I can provide you with concise and comprehensive advice and assistance regarding all aspects of your Buildings and Contents Insurance needs, from initial advice to application stage, and all the way to completion. Having an insurance professional on hand to assist you every step of the process can save you time, effort and money, easing the stress of arranging insurance.
Please contact me today for an informal and friendly chat to discuss your needs. All initial advice is completely free and confidential. You can contact me using the “contact us” form at the top right of this Page and i’ll get back to you as soon as possible, or alternatively you can contact me via my details below, or CLICK HERE
Thank you for visiting.
Balraj Singh (Bal)
Tel: 0330 010 1433 (Mobile Friendly)
Mob: 07985 417 490