There are several types of home insurance to choose from, so when you’re shopping around for a quality policy, it’s important to ensure you are looking for the right kind.

Perhaps, the two that are commonly mixed up are contents insurance and buildings insurance. These two policies cover very different things, so it’s crucial you purchase the correct one for your needs. Read on to find out the precise differences between these two varied but vital types of home insurance.

Why do I need contents insurance?

Taking out a contents insurance policy is totally the option of the homeowner, there is no legal requirement for contents insurance and no third parties connected to your house that require you to have it, either.

That being said, having a sound policy does make sense to most people, as it is a hassle-free way of replacing any possessions you may lose in the event of a burglary, fire or flood.

What does it cover?

Contents insurance covers all your possessions in your home, from your bed to the paintings on your living room wall, and everything else besides. If your treasured belongings are destroyed in a fire or flood or stolen during a break in, your insurance will cover the costs to replace them.

For this reason, you should make sure you provide an accurate assessment of your personal property. If you do not insure something for the full amount it is worth, it could mean you risk voiding your entire contents insurance policy.

Why do I need buildings insurance?

While having buildings insurance isn’t required by law, most homeowners know that it is in their very best interest to take out a policy. If you do not have buildings insurance and something tragic happens to your home, you could face enormous bills to get the house repaired, or even face being made homeless.

Furthermore, many mortgage lenders insist on their clients having buildings insurance, so if you are looking to get a mortgage, a good buildings insurance policy should be in place.

What does it cover?

Buildings insurance covers exactly what the name suggests, the actual building that is your home. It covers the fixtures and fittings and any outbuildings that may come with your property. While buildings insurance doesn’t cover the actual value of the home itself, it is based on how much it would cost if you ever needed to rebuild the building, including materials and manpower.

Buildings insurance also covers fitted items, such as the kitchen sink and the bathtub, which contents insurance does not.  

To compare quality buildings insurance and contents insurance policies, visit Cuuver’s website today.

This should not be construed as advice and is guidance only.