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BUILDINGS AND CONTENTS INSURANCE – YOUR ULTIMATE GUIDE
Buildings and contents insurance is an often overlooked aspect of insurance, but ignoring it entirely is often a grave mistake. In this guide, we’re going to take a closer look at what these policies usually cover, and why it’s so important to have one. By the time you’ve finished reading, you’re going to understand why buildings and contents insurance is so vital in this day and age – so let’s get started.
Firstly, the sheer value of your home should be a good enough reason to make sure it’s properly insured. There’s nothing worse than having your property incur damage from a storm, flood, or even vandalism – only to discover your existing insurance doesn’t cover the damage. This means you can be lumped with a huge bill, and receive no help at all when it comes to paying it.
However, a quality building and contents policy will protect you against all of these things in more – although it’s crucial to understand the terms and conditions before you sign up to any particular policy. The premium you’ll have to pay on one of these policies can vary quite dramatically, based on the value of your property, along with the location, and the amount of coverage you’ve chosen to receive. What’s more, the rate you have to pay can vary again when it comes time to renew the policy – especially if anything has changed in regards to your property. In this case, your property will most likely receive an independent valuation, which will help determine the amount of your coverage, along with the rate you’ll be charged with.
But while you may understand the importance of building insurance, is it really so important to insure the contents too? Well, with the huge amount of technology in most people’s homes, it’s equally important to insure your possessions as well!
Interestingly, research has shown that the value of goods within the average home far out value the small price of contents insurance, so it makes sound economical sense to opt for a policy which covers your home contents.
Of course, the level of cover you choose, along with the excess you’re willing to pay, may change over time – but it’s certainly a wise decision to choose some kind of coverage, just in case the worst was to happen.
The most expensive choice will usually be a ‘new for old’ policy – but this does give you the added advantage of having your old item replaces entirely with the latest model. For example, if your television was 8 years old, it’s likely depreciated in value quite a bit. So even if it cost you a great deal of money when you initially purchased it, the value it has now will pale in comparison. But a ‘new for old’ policy will allow you to replace it with an item of it’s initial value, rather than it’s current value. Ultimately, this represents a very good deal, and is well worth the extra price.
Overall, choosing a buildings and contents insurance policy that suits your needs will take a little planning and research, but for most people, it provides you with a sound investment of your time and money.