A basic guide to house, buildings and contents insurance

Whether you are buying a new house or moving into rented property, you will need to know about the best ways to protect your property and possessions.

As it goes, the priority for any homeowner will be to secure buildings insurance to cover their property against damage and disaster. Buildings insurance is required on any mortgaged property as a condition of the mortgage and must be arranged as soon as contracts are exchanged.

For those moving into a new rented property, building insurance is the responsibility of the landlord. However, for both homeowners and tenants the decision to purchase contents insurance to protect their possessions is at their discretion. In most cases, homeowners may be able to obtain a discount by buying a joint buildings and contents policy as opposed to purchasing them separately.

When it comes to buying buildings insurance, working out the total sum insured is not as simple as stating the market value. Indeed, anyone buying a property with a mortgage is required to ensure that a survey is carried out on the property prior to receiving a mortgage offer. That survey will include the estimated cost of rebuilding the property if it were to be totally destroyed.

In addition, when taking out building insurance, the amount of cover required is the rebuilding cost and not, as many people believe the purchase price or current market value of the property.

However, if buildings insurance is required for a property that was purchased many years ago, help is at hand for those unsure of the rebuild value. So, if in any doubt about how to calculate the amount of house insurance required, such as in cases where the property is a listed building or has other unusual features, seek the guidance of a surveyor.

Similarly, many insurers often include home contents insurance calculators on their websites. Therefore, the total replacement cost of the entire contents of the home can be simply calculated. Everything from floor to ceiling in each room that is not part of the fixtures and fittings should be included. Anything considered an integral part of the property’s structure, such as built-in wardrobes will be covered under buildings insurance, but anything that is not fixed to the property is considered contents.

Furthermore, when buying home contents insurance, inform your insurer of the value of any treasured collection or high-value items. They will probably need to be included as special items on the schedule of cover, so telling your insurer of their presence in the home is vital.

And if you need to purchase either buildings or home contents insurance, always make sure you read the proposal thoroughly and that you are aware of any exclusions and excesses on the policy.

Isla Campbell writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.