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Home insurance:different types of cover
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Posted On :
Jul-09-2009
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Article Word Count :
471
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Buildings and contents insurance are both types of home insurance.
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Buildings and contents insurance are both types of home insurance. Buildings insurance covers you against financial losses if the structure or permanent fixtures of your house are damaged, and contents insurance is for your belongings that would go with you if you moved. There are many different levels of cover, so here are some things to be aware of when choosing a policy.
In buildings insurance it is of utmost importance that the full cost of rebuilding your property is covered and not just the market value. The land your house is built on is unlikely to be damaged by fire or flood, and it is often cheaper to rebuild a house on the existing plot than to buy another. Bear in mind that similar houses just a few streets apart may be worth different amounts, but rebuilding costs will be the same.
Your contents insurance must give enough cover to replace your belongings, so be careful not to under insure. This means that the maximum your insurer will pay is not enough to cover your losses. Your premium will increase with the amount of cover, but it would be a false economy to under insure because if you were unlucky enough to make a claim you would lose out financially.
To get an accurate idea of how much cover you require, take an inventory and dont forget to include homemade items and gifts. Work out the rough value of each, and consider how much they would cost to buy new. If you pay extra for a new for old policy you will get the cost of new replacement items, otherwise you will only get the value of your old used ones which could be a lot less.
You should think about cover for the contents of your home that you take out and about, like mobile phones, or jewellery. Also think about the contents of your garden, greenhouse and shed, are your tools and garden furniture covered?
Different buildings insurance policies give different levels of cover. In addition to the house, look for policies that include outbuildings like your greenhouse, shed and garage, which can be expensive to repair.
If you build an extension, convert your loft or make any other big changes to your home make sure that you tell your inSurance company and update your policy. If not you could lose out if the improved aspects of your home need to be repaired or rebuilt.
Look out for discounts if you buy your contents and buildings insurance from the same provider. Do shop around and remember that the cheapest cover may not be the best value, and for a slight increase in premium you may be very grateful for the additional cover should you be unlucky enough to need it.
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Article Source :
http://www.articleseen.com/Article_Home insurance:different types of cover _1652.aspx
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Author Resource :
It only takes a few moments to get our contents insurance quotes online with Kwik Fit Home Insurance.
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Keywords :
home insurance,
Category :
Finance
:
Insurance
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