What are the different types of home insurance?
Broadly, there are two types of home insurance in the UK – buildings insurance and contents insurance. These policies can be combined or taken out separately with different providers. So what is covered by each type? Buildings insurance: This covers the bricks and mortar of a home as well as its permanent fixtures and fittings. It should be set at such a level that if your home were completely burned to the ground it would cover the rebuild cost in its entirety. Many mortgage providers now insist that you take out buildings insurance so that they wont be left without the security they placed against your loan should a disaster occur. Contents insurance: This protects items that are not fixed in your home – for example, curtains, carpets, clothes, electronic goods and furniture. Contents insurance is not essential but is advisable, particularly as it will protect you against home burglaries as well as risks including fires and storm damage. In addition there are a number of specialist h
