Home Insurance Guide – 2/8

Few, if any, material possessions in life are more important than the roof over our heads and the belongings we treasure within. That is why we have compiled an exclusive guide to home insurance to help you secure the right protection.

Buildings Insurance

Buildings insurance is of vital importance – for example, if your house burnt down do you have the money to cover your losses? Mortgage providers insist that you have building insurance so that in the event of a disaster it can be repaired or rebuilt, as lenders don’t want to be left without security for their loan.

A policy should cover funds to rebuild your home in the event of it being totally destroyed or damaged to the point that complete rebuilding is necessary. Some policies only cover market value, so be sure to check. The policy could also cover against damage caused by events beyond your control including:

• Storm and flood damage
• Burst pipes and other incidents of water leakage
• Fire, smoke and explosions
• Subsidence
• Vandalism or third party damage

The policy could also provide you with alternative accommodation if your home is uninhabitable. Be sure to not simply opt for the cheapest building insurance quote available and think about your needs. Use the price comparison tool at moneysupermarket.com to find a building insurance policy that offers the best cover at the cheapest price.

As well as the structure, buildings insurance also covers permanent fixtures and fittings including baths, toilets and fitted kitchens, bedroom cupboards and interior decorations. The test is whether or not the fixture can be removed and taken to a new home, for example fitted cabinets. Policies will also usually cover outbuildings such as garages, greenhouses and garden sheds but might not cover boundary walls, fences, gates, paths, drives and swimming pools.

For landlords, building insurance is crucial, as it is for all homeowners. For tenants, building insurance is usually covered by the landlord and only contents insurance needs to be considered.

In part three we take a look at contents insurance.