Buildings and contents insurance can be bought separately although most lenders offer this as a combined policy.
Buildings insurance covers the house in case of any disaster, which is so badly damaging needs, a complete rebuild on the property. This disaster could be something completely out of your control such as a natural disaster like flooding or fire damage, resulting in the insurer paying out for all repairs. This cover is very important for homeowners, as natural disasters cannot be predicted and if they were to come about could cause devastating damage to not only the buildings but to the individuals finances without the correct policy equipped.
Contents insurance is a policy to cover items inside and not attached to the property, for example furniture, jewelry and even clothing. The policy will cover if perils have come to these items, which have been out of your control including theft. The cheapest type of cover will normally by indemnity insurance which covers household items ‘like for like’ for example if you were to break your 4 year old oven, then you will be replaced with a 4 year old oven not a brand new one. Although the more money you spend the new for old option will begin to open up which will replace any damaged or stolen items with new products however old the items were.
Some mortgage lenders will in fact make these insurances compulsory to cover the loan you will be paying them back, so be sure to speak to an advisor to discuss what would be best for your situation and property. Our advisors are trained to advise the best possible advice relating to insurances, please give us a call or fill in the form below.