Consumers frequently have questions about the difference between buildings insurance and contents insurance. Many are also unsure of which type of cover they need. Prudential, an established provider of buildings and contents insurance in the UK, answers some of these questions below.
In short, buildings insurance covers the structure of the home along with its fixtures and fittings. Buildings insurance covers homeowners for the costs of repair or rebuilding after fire, flood or related damage. Contents insurance covers the contents of the home, the movable possessions.
Buildings insurance
To determine if you need buildings insurance, ask yourself whether you'll be affected financially if something were to happen to the bricks and mortar of the residence you are living in or renting out. This mostly applies to homeowners, and not to those renting their property.
When looking for buildings insurance, take out cover that insures your property for the possible rebuild costs, rather than the market value. It can often prove less expensive to build a house from scratch than to buy another, as the land it’s built on will generally remain usable.
Do not to opt for the cheapest quote available. Rather think about your needs, and allow for potential increases in the cost of construction. Adequate coverage is worth more than a lower premium.
Contents insurance
Contents insurance is protection for the movable items within your home, such as appliances, electronic goods, furniture and clothing. Contents insurance can be bought by homeowners, landlords and tenants alike. Check that your home contents insurance includes items taken outside the home such as bicycles and the contents of your handbag. Never assume that items are covered, rather check the fine print and be sure.
Many homeowners and landlords find they need both types of cover. By taking out a combined policy with Prudential you could be eligible for a discount. Visit www.pru.co.uk for more information or a free quote.
Please note that the above article was written on behalf of Prudential and Prudential does not control and cannot guarantee its relevance, timeliness, or accuracy. The views expressed in this article are not the views of Prudential.
