Building and Content Insurance
Building and Content Insurance
In case of unforseen circumstances, everyone needs to ensure that they can protect their most valuable assets and possessions. Building insurance, also known as house insurance, is commonly understood as insurance to cover the structure, fixtures and fittings of a property. The right policy can protect you when you need it the most.
While building insurance can provide protection to your property, contents insurance can provide protection to your goods. This is insurance on your possessions in case of damage or loss. Contents insurance covers the material possessions within your home, for example, electrical goods such as Plasma TVs and stereo systems, furniture, curtains and carpets. Certain items, such as expensive computers, may need additional insurance. Read the articles below for more information...
If you own a home, there are two types of insurance that you need: Building Insurance and Contents Insurance. If you rent your home, you'll still need to consider contents insurance. As a renter you are only liable for the contents of your dwelling, but as a homeowner your responsiblity in regards to liabilty increases significantly.
What is Home Insurance? Building Insurance is sometimes referred to as Home Insurance or Homeowners Insurance (abbreviated as HOI). This type of insurance covers private homes that usually requires that at least one of the insureds occupies the home. Home insurance can include losses to one's home and loss of it's use (additional living expenses), as well as accidents that may happen at the home. Insurance should be adjusted to reflect the replacement cost, after applying an inflation factor of a cost index.
What is Content Insurance? Basically, contents insurance pays for most things you'd take with you when you move, such as jewellry, furniture, clothes, electrical goods, and so forth. It is estimated by the Association of British Insurers that 20% of people don't have enough contents insurance. Skimping on insurance can leave you in a lot of trouble if you are burglered or your home is flooded and you can't afford to replace your items!
Why do I need to get Home & Content Insurance? Before you decide whether or not to buy a policy, add up how much it would cost to replace everything you own. Many people, especially those who rent, don't appreciate the risk of not having their contents insured. We have all seen stories on the news of people whose homes burn down, and we often hear that they did not have any insurance and can not afford to replace their items. Don't be one of them! There are benefits to combining building and content insurance, which includes having the coverage explained and underwritten by one company. This will limit your aggravation and minimize your chances of a gap in your coverage. Most homeowners get one policy that covers both and home contents.
How do I find the right insurance for me? Insurance companies may seem similar, but policies vary between insurers as does the level of coverage. Most cover items inside the house and some will also cover you for contents that you take out of your house, such as a camera or jewellry. Check with the insurance carrier to see if their policy includes this coverage as standard, or as extra. Some household policies also offer cover for any legal expenses in case you are sued or need to sue. The insurance policy is a lengthy contract and lists what will and will not be paid in case of unforseen events. Typically, claims due to war or floods are excluded, but special insurance can usually be purchased for unforseen circumstances such as flood insurance. A policy is usually a term contract that is for a fixed period of time. The payment the insured makes is called the premium.
How can I save on my Homeowner's Insurance?
You can save money on Building Insurance if you know how. There are discounts available from your insurance company for a variety of reasons, from the type of building material used to build your home to how close you live to a fire station. Here are some tips to help you save.
Tip OneShop around. Check with several different insurance companies to get rate quotes. Do your friends or family members like their insurance company? Get online quotes from sites like MSN Money. Tip TwoBuy your home and auto policies from the same company. Many companies will give a discount if you buy both homeowners and auto coverage from them. Tip ThreeInsure your home, not the land. Although your home and its contents are at risk from fire, theft, windstorms and other perils, the land your house sits on is not. Don't include the value of the land in deciding how much homeowners insurance you need to buy.
Tip FourCheck your policy annually. You want your policy to reflect the value of your home and belongings. If you review your policy every year, you will be able to make the necessary adjustments. If, for example, you just sold a valuable painting, you won't need the same amount of coverage. But if you added a garage, you'll need to increase your coverage. Tip FiveStay with an insurer. If you've kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5% after you've been with them for three to five years, and some companies will discount you as much as 10% after six years. Tip SixTry senior discounts. Insurance companies have found that retired people stay at home more and spot fires sooner than working people. Older people also have more time for maintaining their homes. If you're at least 55 years old and retired, you might qualify for a discount of as much as 10%.