Insurance Guide

Online Insurance tips and advice

Other Insurance

Buildings and contents Insurance

When you own a property, it is normal to get buildings insurance for it. If you have a mortgage, you lender will insist that you have this cover. This is because they partly own the property and want to make sure that it is not at risk of losing all of its value. If the house burns to the ground, for example, they will want to make sure that there is insurance in place so that the funds are available to rebuild it again.

As a home owner, even if you do not have a mortgage, you may still want to make sure that your property is protected. The insurance will not only cover you for fire, but also for any other damage caused to your house. There will be exceptions and you may find it harder to get insurance if you live near a river that is likely to flood or cause subsidence.

If you are renting or own a property, you might want to consider insuring the contents. This means that if someone breaks in to the property and takes things, then you should be able to claim for them. If you have a fire or flood then you might be able to make a claim as well. Also if you accidentally damage any valuable items, you may be able to have the repaired or replaced, although this will all depend on the exact terms of your insurance.

Some people do feel that insurance is a waste of money, in that they are paying money each year or each month and they are not getting anything for that money. However, you are getting that peace of mind and if you had to find the money to rebuild the property then it is very unlikely that you would be able to do so. Also replacing all of your possessions at once, which you might have to do, should you have a fire, could be extremely expensive too.

If you do not own your home and have very few possession, then having buildings and contents insurance would probably not be worthwhile. However, once you start building up some valuable possessions and you won your own home, you will need to consider insuring it. The larger the property and the more expensive your possessions, the more expensive your insurance will be. However, if you search around, you should be able to find a good price.