Contents insurance covers fittings and personal possessions, such as furniture, clothes and electrical goods. Buildings insurance covers a property’s actual structure and usually includes external elements such as garages, walls and gates.
You can buy the two separately or together. If you’re a homeowner you’ll probably want both, but if you rent, buildings insurance should be your landlord’s responsibility.
Contents and buildings all-in-one deals
Combined policies can be considerably cheaper and also make it easier if you ever have to claim on both contents and buildings at once. Before taking out any cover, it’s worth noting a few key points.
10 things to know before taking out a policy
- The excess – This is the value of a claim below which the insurer won’t pay out, £100 is a common figure. Choosing a large excess, £600 for example, will reduce the cost of monthly premiums but means you’ll be more out of pocket if you do make a claim.
- Rebuild costs – If your home was destroyed, how much would it cost to rebuild? This isn’t your property’s current market worth; it’s what the reconstruction itself would cost.
- Homes out of the ordinary – Generally, standard cover is for brick built homes with tiled roofs. However, if you own a somewhat unusual property, perhaps a thatched cottage or a listed building, you might need specialist cover.
- New for old – Many policies replace old items with their new equivalent, others will only pay out the second hand value. New for old is, of course, preferable for most people!
- Limits on items – Most policies have a claim limit on individual items. A valuable ring might not be totally covered, for example. Some items might need insuring separately.
- Total sum insured – Don’t underestimate how much cover you need; the average value of a a property’s contents is £45,000.
- Outbuildings – If you have a garden with a shed, or other outbuildings such as a garage, check your cover includes these and any items stored in them.
- Cover away from home – Check if you can include items stolen or damaged away from your property, it might be worth paying the extra.
- Mobile phones and gadgets – Limits on mobile phones and other potentially expensive technical goods may seem quite low, especially if you love your tech! It can be worth finding cover with larger limits on such items.
- No claims discount – If you haven’t made a claim for more than a year, it’s definitely worth asking if the insurer offers a ‘no claims discount’ as it can bring down your monthly premium considerably.
Our customers are at the heart of everything we do, so we have a team of experts with a real passion for making sure people get the cover that’s right for them, at the right price. To speak to one of our experts, call 0203 014 9300 or email firstname.lastname@example.org