Buildings & Contents Insurance

Contents Insurance

Contents insurance is insurance that pays for damage to, or loss of, an individual’s personal possessions whilst they are located within that individual’s home. Some contents insurance policies also provide restricted cover for personal possessions temporarily taken away from the home by the policyholder.

In this context "possessions" means anything that is not permanently attached to the structure of the home (possessions that are permanently attached to the structure of the home can only be insured via buildings insurance.) Some contents policies may also include possessions kept in outbuildings or in the garden area attached to the house.

Contents insurance is often sold alongside home insurance but it can also be purchased as a stand-alone policy.

Buildings Insurance

Domestic Buildings Insurance, is a type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, loss of its use (additional living expenses), as well as property owners liability insurance.

The cost of home insurance often depends on what it would cost to rebuild the house and which additional covers are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims due to earthquakes, or war (whose definition typically includes a nuclear explosion from any source) are excluded. Insurance must be updated to the present rebuilding value, taking into account both inflation and any alterations to the property.

The home insurance policy is usually a term contract, a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station, or if the house is equipped with fire sprinklers and fire alarms.

In the United Kingdom, most home buyers borrow money in the form of a mortgage loan, and the mortgage lender generally requires that the buyer purchase homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be destroyed. Anyone with an insurable interest in the property should be listed on the policy. In some cases the mortagagee will waive the need for the mortgagor to carry homeowner's insurance if the value of the land exceeds the amount of the mortgage balance. In a case like this even the total destruction of any buildings would not affect the ability of the lender to be able to foreclose and recover the full amount of the loan.

For further information or a quotation call Quadris Insurance Brokers on:
0208 144 1271 or email us insure@quadrisinsurance.co.uk