Insurance
Building and contents insurance.
Buildings and contents insurance is positioned under the category of home insurance. It is a joint insurance that will cover or replace any damage that might occur to the house or its contents, including loss. It is vital for all mortgaged houses, and the majority of other homeowners who do not have a mortgage will also have this type of insurance. It is possible to get the two insurances individually, although you will discover that the majority of insurance providers offer them as a combined package.
Buildings insurance – This insurance covers your house in case of a disaster where your house is so badly damaged that it needs to be completely rebuilt. The event which caused the damage must have been completely beyond your control, for example flood damage, a major fire, , water leakage/burst pipes or a third party act of vandalism and so on. Mortgage providers will be adamant that you take out this cover, as it means they will be able to recover their losses in such events.
Contents insurance – This covers all items in your house which are not fixed to the property, for example your furniture, appliances and jewellery. Many of the contents insurance policies on the market will even cover things like the contents of your refrigerator! The cheapest type is indemnity insurance. This cover will replace exactly what was there before, so if you claim for a dishwasher that was already four years old, you will be given a replacement dishwasher that is four years old. The more expensive "new for old" option will give you a brand new replacement of whatever gets damaged or stolen; therefore you would receive a brand new washing machine instead of one that is the same age as original. Contents insurance will cover you in most of the same situations as buildings insurance, but also includes theft.