When you come to purchase your home insurance, you’ll notice that there are two types on offer.
Firstly, there’s buildings insurance. This is designed to cover the actual structure of your home; the bricks and mortar. Your buildings insurances is also likely to cover any permanent fixtures and fittings in the property.
Buildings insurance could help you meet costs should the structure of your home be damaged, by fire, flood or a storm for example.
It’s probable that your mortgage lender will insist you have buildings insurance in place before they agree to lend you any money.
Secondly, there’s home contents insurance. This type of cover is designed to protect the possessions inside your home. For example, it could help replace or repair items damaged by fire or lost through burglary.
Typically, this type of insurance covers anything that you’d take with you if you were to move house –this can include furnishings like carpets and curtains.
It’s wise to read through any policy documents carefully. Pay particular attention to any exclusions that may apply. For example, your contents insurance may have a single item limit. This means that it will only cover items with an individual worth of up to a certain amount (usually around £2000).
You may be offered some optional extras with your cover. For example, accidental damage cover may be offered to you alongside both your contents and buildings insurance. This could help cover any accidental mishaps in the home – such as spillages or breakages.