All of us at some or the other point in our life have to buy some sort of insurance cover. It may be a life policy, car insurance, shop policy cover and many more. It goes without saying that coverage is extremely important for the protection and safekeeping of an individual or a property. And, just like all other important things need coverage, your house too needs an indemnity.
In simple words, home insurance offers risk coverage towards fatalities or damages caused to the construction and/or contents of your house in case of any natural or man-made incident or mishap. It is a contract involving you and the insurer, where in the later guards your house from unpredicted incidents like loss or harm due to fire, lightning, smoke, storms, explosions, riots, burglary, destruction, etc. However, before you buy a policy, it’s important for you to know that there are two different types of policies that you can take; these are- building cover and content indemnity.
Buildings cover is for defence against any fiscal losses if the concrete structure or permanent fixtures of your home are damaged or destroyed. While taking this policy cover, remember that the full cost of reconstructing your property is covered, and while claiming do not only agree for the market value. In general, the property on which your house is built on is not likely to be damaged by fire or flood, and it is often cheaper to rebuild a house on the existing plot than to buy another. Thus, keep in mind that similar houses just a few streets apart may be worth different amounts, but reconstruction costs will be the same.
Contents insurance, on the other hand, gives you cover for the items in your home that would go with you if you moved. This policy needs to give you an adequate amount of cover to restore your belongings, so be careful not to under insure. Think about coverage for the contents of your home, like expensive electrical items, or jewellery. Also, think about the contents of your garden, greenhouse and shed, and garden furniture. There are several policies available, which offer different level of covers. So, make sure you are aware of terms and conditions and are well aware of the inclusions and exclusions so that you are not under covered.
Before you buy a policy, you can also use a home insurance policy calculator and get an estimate of the cover you should buy. Also, watch out for discounts if you buy your contents and buildings assurance from the same provider. Do shop around, but also keep in mind that the cheapest cover may not be the best value, so be careful and make an informed choice!
