Building and Contents Insurance
Building and contents insurance has become an inevitable part of life and in some cases its even compulsory to have it. With countless risks of your property and your belongings getting damaged, lost or stolen its really important to protect yourself against potential loss. Anyone who’s ever had all their possessions stolen or lost in a fire will attest to the value of having proper insurance cover. The simple fact is that you never know when its your “turn” and usually when you really need insurance, its too late.
While we commonly talk about home and contents insurance in the same vain, its really 2 very different things. Although the same policy can cover both, it can (and in some cases should) be bought separately.
Building Insurance:
Building insurance refers to insuring the building itself against natural disasters, structural damage, fire or any other damage to the building itself. This includes the land as well as any permanent outbuildings on the property. As a rule of thumb, anything that cannot be moved is covered by your building insurance but be sure to go through your policy with a fine toothed comb as there are many exclusions and Gray zones that differ from one insurer to the next. Building insurance is compulsory when financing a home.
Contents Insurance:
Contents insurance refers to the insurance of all your belongings inside your home. As a rule of thumb, its all the movable belongings inside the home but this varies vastly between different insurers. One important thing to be aware of is that some belongings are confined to your home (stuff like beds and coaches) while other things like mobile phones and electronic equipment can be used outside the home. Your insurance policy depends on the level of cover you want and insuring every last possession you have can be very expensive.
By getting both building and contents insurance at the same time with the same insurer definitely has potential for cost savings. Its also a good idea to always get a profesional surveyor to come in and help you establish the true value of your building and your contents as this can have a huge effect on the price of your premiums.
While your house itself may be your biggest asset, its important to look at the value of your possession as well. In many cases the real value of everything you own adds up and losing it can be a significant loss. Paying for insurance can be a pain and the temptation to not have it is always there. Don’t be stupid. If you think it won’t happen to you, think again. Better safe than sorry. Always ask yourself this question: Am I prepared to lose it all?