Buildings and Contents Insurance

What is buildings insurance

Buildings insurance usually covers the structure of your home and any fixtures or fittings, garages, drives, fences, walls, out-buildings, swimming pools and tennis courts

Insurance cover includes the cost to repair or rebuild your home if it is damaged to a set rebuild cost although some insurance companies have an unlimited level of cover. Standard cover is new for old and applies to specified perils.
 i.e. fire, lightning, earthquake, storm, flood, burst and leaking pipes, theft, vandalism, collision by vehicles, aircraft and animals, falling trees, subsidence, heave or landslip.

Cover can be on either a standard basis or an accidental damage basis

What is contents insurance

Contents insurance is cover for your household contents, i.e. furniture, carpets, curtains, television, , kitchen equipment, ornaments, personal possessions, clothing, computers, etc. It is the total value of everything that is in your home that you would take with you if you were to move. The contents value does not include items included in building insurance e.g. fitted wardrobes and fitted kitchens. A contents value of £20,000 is the minimum amount for most household contents insurance policies and is insufficient for most people. A likely average is £40-50,000.

With most contents insurance there is the ability to insure your personal possessions away form the home. This optional cover allows you to insure your personal items normally worn or carried outside the home, e.g. watches, jewelery, cameras, anywhere in the world for up to 60 days a year.
Contents cover can be on either a standard basis or an accidental damage basis.

What is a rebuild cost

A rebuild cost is the sum your home is insured for and is normally set by your survey  or mortgage lender when they survey your home. If you are uncertain as to what rebuild cost you should select please use the link below which will help you calculate the figure.
http://abi.bcis.co.uk/index.cfm#calculation

What  is provided on a standard basis

Standard cover is to replace items on a new for old basis and applies to specified perils such as fire, theft, lightning, earthquake, etc. It is important to calculate the value of items to be insured on a new basis, not wear and tear, i.e. calculate the full replacement value.

What are specified and unspecified items

Unspecified items are usually items under the value of £1,000 each. Specified items generally are, freezer contents, pedal cycles (over the value of £400),  musical instruments used for professional or semi-professional purposes, camping equipment, , firearms, dentures. Unspecified items can include other items and equipment, the list varies from insurer to insurer.
Specified items are usually items over the value of £1,000 each, such as watches or jewelery, or items that cannot be covered as unspecified.

What is personal possessions insurance for tenants

Personal possessions insurance for tenants provides cover for the possessions of single people or couples, either living alone or in shared accommodation.

You can typically insure possessions with a total value of between £3,000 and £15,000 on a new for old basis. Additional cover is available including cover for your possessions when away from the home.

What is personal possessions insurance for students

Personal possessions insurance for students provides cover for personal possessions with a typical total value of between £2,000 and £5,000 whether you are living in halls of residence, on or off campus flats or shared houses. Additional cover is available including cover for your possessions when away from the home.

What is a no claims discount

No claims bonuses are awarded according to the number of years you have held home insurance in your own name and have not made a claim. Discounts vary from insurance company to insurance company but usually range from 10% for one claim free year up to 30% or more after and up to three years.

What is an excess and voluntary excess

Excesses are the amounts of a claim that you have to pay. Generally with household insurance policies the insurers will not pay the first £50 of a claim.

In some cases you may elect to pay a voluntary additional excess to receive a lower premium.

What is new for old

The term new for old means that in the event of a claim the damaged item would be replaced at today's price with no deduction for wear and tear. It is important that when calculating your sums to be insured you use the same basis.

How can I reduce my premiums

Many insurers offer premium discounts for improved security. Having good quality locks, an approved burglar alarm, being a member of a police-approved neighborhood watch scheme and being in the property during daylight hours can all mean a cheaper premium.

Building Insurance Quotes

With building and contents insurance it is worth while shopping around on comparison sites for a quote. It is worth baring in mind that some insurance companies such as Aviva and Direct Line do not offer quotes on these sites. It is certainly worth while visiting providers like this before buying a policy online.