What is Building & Contents Insurance?
Home insurance, which is also called house insurance, is a term that can be used for two types of insurance for your property. These are: Buildings insurance and Contents insurance.
Buildings insurance protects against damage to the physical structure of your home, such as the roof or the windows. Any permanent features of your property, such as kitchen cupboards or your bathroom suite, are also covered by this type of insurance. If you own your home, buildings insurance can be worthwhile to protect your investment.
Contents insurance covers your belongings that you would move with you if you moved home. Your furniture, kitchen appliances and white goods, and your tech all come under this category.
Some banks require house insurance for mortgage applications, but this depends on who you have your mortgage with.
Whether you’re buying your first property or you’re moving to another home, having house insurance for your mortgage can be a great investment. Getting the right policy for you is crucial, so it can be helpful to speak to someone who has the expertise to assess your situation and find the right product for your needs – Town & Country Mortgage Services are available to offer free advice for our mortgage and protection advice
Why Do I Need House Insurance?
There’s no legal requirement for house insurance for mortgage applications, but some insurers may insist on it as part of their terms and conditions in securing a mortgage, since they are securing their money against your property. Even if your mortgage provider doesn’t insist on having insurance, it’s a worthwhile investment to protect your home and provides reassurance that you’ll be able to fund repairs if anything should happen.
If you are renting your property, buildings insurance won’t be necessary, but you can still benefit from contents insurance to protect your belongings. However, as a landlord you will be responsible for protecting the property, so you should take out a buildings insurance policy to cover the building you own and rent out.
In terms of contents insurance, your items that are kept within your home will be covered, such as your electrical items, furniture, jewellery, laptops and more. However, buildings and contents insurance doesn’t cover everything – gradual wear and tear to your home, for example, will not be covered by your policy. Likewise, you are unlikely to be covered if your household appliances break down or your garden fences are damaged by weather.
Different policies provide different levels of cover, so it’s worth looking at different companies to find the right deal and the right protection for your needs. A broker can help you with this step, by assessing your needs and helping you choose a policy – at Town & Country Mortgage Services, we have many years’ experience in this field and can provide you with impartial advice.