There are various types of insurance policies related to your home, each of which serves a beneficial, unique purpose.
However, the two most common forms of insurance are contents insurance and home insurance. These policies are both important to homeowners, but they are also for different things and it’s important you don’t confuse the two.
Today, Cuuver.com explains the difference between home insurance and contents insurance.
What is home insurance?
Also known as buildings insurance, home insurance protects the physical structure of your home. As well as the basic outside structure of your house, home insurance also covers permanent fixtures and fittings, like sinks and toilets. If you have fittings such as wardrobes or a fitted kitchen, home insurance can also protect these.
Most home insurance policies also cover garden sheds, greenhouses and garages, although it’s always a good idea to make sure of this with the insurer.
This policy will cover you in the event of your home being damaged or even destroyed by events out of your control, such as a fire, explosion or a hurricane.
While home insurance is not a legal requirement, it is a policy that you should really invest in. Although it doesn’t typically cover the full value of your property, it can cover the sum it would take to rebuild the house from scratch.
What is contents insurance?
Contents insurance is there to cover the items within your home. Standard inclusions in a contents insurance policy usually include the likes of electrical equipment such as computers and televisions, valuables and furniture.
If you store valuables in your garden shed, make sure your policy covers belongings in your shed. The same goes for if you have any garden furniture.
Contents insurance exists to cover any items that are either stolen during a break-in or are destroyed in an accident. When arranging a contents insurance policy, it’s important you don’t under-budget on the value of your possessions; this could lead to your policy being void. Similarly, don’t over-value your possessions as this can also result in a voided policy.
It is possible to opt for a combination of home and contents insurance, although you can always invest in two separate policies.
Compare home insurance and contents insurance policies from some of the UK’s leading insurers at Cuuver.com, today.
This should not be construed as advice and is for guidance only.