Your home is likely to be one of your biggest investments, so it's important to make sure it's properly protected. In this chapter, we'll explain the difference between Buildings and Contents Insurance, what each one covers and when your insurance should begin.
By the end of this chapter you’ll understand:
✓ The difference between Buildings and Contents Insurance.
✓ What each type of insurance typically covers.
✓ When your Home Insurance should begin.
✓ Why Home Insurance is an important part of homeownership.
✓ Common misconceptions about Home Insurance.
Estimated Reading Time: 6 minutes
Home Insurance is designed to help protect your property and belongings against unexpected events such as fire, storms, flooding, theft and accidental damage (depending on your policy). Home Insurance is usually split into two separate types of cover:
Many homeowners choose both to ensure they’re fully protected.
Buildings Insurance
Buildings Insurance protects the structure of your home. This typically includes:
If your property was damaged by an insured event, Buildings Insurance helps cover the cost of repairing or rebuilding your home. If you’re buying with a mortgage, your lender will usually require Buildings Insurance to be in place before your purchase completes.
Contents Insurance
Contents Insurance protects the belongings inside your home. This can include items such as:
A simple way to think about it is, if you turned your house upside down, anything that falls out would usually be considered contents. Contents Insurance is optional, but for many people it’s just as important as protecting the building itself.
Many homeowners choose to arrange both Buildings and Contents Insurance together.
While Buildings Insurance protects the property itself, Contents Insurance protects everything you’ve worked hard to buy and replace over the years.
Together, they provide comprehensive protection for your home.
Stop & Think
Imagine coming home to find your property seriously damaged by a fire or flood. Ask yourself:
Home Insurance helps provide financial protection when the unexpected happens.
One of the most common questions we’re asked is when Home Insurance should start. If you’re buying a property with a mortgage, Buildings Insurance is usually required from the point you become legally responsible for the property. Your solicitor and adviser will help make sure your cover starts at the right time.
“My lender arranges my Home Insurance.”
Your mortgage lender will usually require you to have Buildings Insurance, but they don’t normally arrange it for you. It’s your responsibility to ensure suitable cover is in place from the appropriate date.
Many homeowners also choose to arrange Contents Insurance at the same time for complete peace of mind.
✔ Buildings Insurance protects the structure of your home.
✔ Contents Insurance protects your personal belongings.
✔ Many homeowners choose both for complete protection.
✔ Buildings Insurance is usually required by mortgage lenders.
✔ The right policy depends on your property, lifestyle and personal circumstances.
Next Chapter →
Choosing the Right Protection
In the next chapter, we’ll look at how these different types of protection work together and how to choose the right combination for your circumstances.
