Many homeowners will be introduced to several types of insurance that range from structural to contents. This could include building insurance and household insurance.
One of the traps that most first-time homeowners may fall into is not knowing the difference between building insurance and household insurance. Let’s look at each.
Building insurance, also known as homeowner insurance, is a necessity when taking out a home loan. It covers your house’s structure. In other words, it covers your home as an immovable asset. The actual structure that consists of walls, bricks, cement, tiles, roof and windows are covered against natural disasters or accidents and damage.
Your building will be insured against any floods, fires, torrential rain and malicious damage caused to your property in the event of a successful or attempted break in. Building insurance is only for homeowners and is not available if you rent a property.
Building insurance is an obvious insurance that covers exactly what it states. There are, however, different types of building insurance. It’s available for both homeowners, property owners and companies. If you are a homeowner, your building insurance will fall under homeowner insurance. If you lease property, it will be considered a business and thus will be categorised as building insurance.
Household Contents insurance, or home contents insurance, covers your household goods that are separate from that covered by building insurance. Where building insurance covers the actual structure, household goods insurance covers the contents of your household.
This includes anything from furniture to valuable artworks. Furthermore, household contents insurance covers all the contents listed in your home in the case of theft or damage. Household Contents insurance is not a legal requirement but it does go some way in helping you recover in the case of theft or damage.
Applying for household contents insurance will see you discuss the values of the items which you intend to insure under your household contents insurance policy. Therefore, movable items such as laptops and jewelry can be insured, but it’s advised you look at All-Risk insurance for such items as it can drastically increase your household contents insurance policy premium.
Household contents insurance is a great option for people who own or rent a property. Ensure your recovery is smoother by having your household contents insured against the potential risk of theft or damage. Choose the WISE insurer, because you deserve peace of mind when it comes to that which is important to you.
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