Guide to general insurance for your home and belongings including contents and buildings Insurance policies. Policies vary, so make sure you read the policy documents to ensure the protection offered suits your needs and that you know what is and is not covered
Insurance is important to everybody and to homeowners in particular. Your home is likely to be the most valuable item you own and it is vital that it is adequately covered by Buildings insurance.
Of equal importance are its contents, which also need to be covered. Start to tally up how much it would cost you to replace your belongings and you'll be surprised how soon the tens run into hundreds and then into thousands of pounds.
Adequate insurance not only covers you financially for the unexpected and distressing events that modern life throws at you - it also brings you substantial peace of mind.
There are basically two types of household insurance policy - Buildings and Contents. The types of risk covered will usually include theft, fire and storm damage, amongst others.
As with all insurance policies, read them very carefully to establish what you are covered for, and especially what's not covered. This can be quite daunting, as policies can have dozens of paragraphs and sub-paragraphs, containing much legal jargon, making their understanding difficult. Fortunately insurers are making their policies more user friendly to help you understand what they really mean but, if you are unsure of the wording, or what you're covered for, seek advice from the insurance company or an independent adviser.
It is often said that you should arrange both your Buildings and Contents policies with the same insurer. Apart from the fact that this may well work out cheaper, there is less chance of dispute in the event of a claim. For example, when it's unclear whether an item is a "fixture or fitting" (covered by your Buildings insurance) or part of the "contents" (covered by your Contents policy), you won't have one company playing you off against the other.
If, through accident or negligence, somebody gets injured or their property gets damaged, you may find that your legal liability is covered under one of your policies. Check the wording so that you know what is and is not covered. If in doubt, get advice from a professional.