Types Of Property Insurance What Is Property Insurance?
Buying a property is an extremely important investment in life, whether it is your home or business, protecting it is crucial. However, even the best forms of prevention will sometimes fail and damage sets in.
Property insurance is a policy which provides financial reimbursement to the owner of the property and its content in the event of theft or damage. Property insurance can include landlord insurance, buildings insurance, and contents insurance.
Types Of Property Insurance
The type of property insurance which property owners will require depends on a wide variety of aspects. If you are the homeowner and currently live in the home, the insurance you choose to take out will vary from a property owner who chooses to rent out the property.
Here are the types of insurance:
Buildings insurance– Buildings insurance is a policy which covers the cost of repairing your home if it is damaged.
Landlord insurance – Due to renting out a property being a form of business, a homeowners policy will not provide coverage for this purpose. If you are a landlord, the property you are renting out will require landlord insurance.
Tenant insurance – If you're a tenant; you will need tenant insurance as landlord insurance does not cover your possessions even if they have contents insurance.
Contents insurance – Contents insurance covers any item which is not part of your homes, such as goods, furniture and other valuables.
The two main property insurance policies are buildings and contents insurance, as most people will have these policies or are considering applying for them when buying a home. Building insurance is not a legal requirement but will be required by your mortgage adviser. Whereas contents insurance is a choice the homeowner makes, as this is not compulsory from your mortgage provider neither a legal requirement.
What Do They Cover?
Buildings insurance covers the cost of repairing your home if it is damaged; policies can vary from one insurer to another in terms of what events you are covered for. However, generally speaking you will be able to claim if your property is damaged due to:
Car and lorry collisions Fire, smoke and explosions Natural events such as floods and storms Oil leaking from your heating system Subsidence Vandalism Water damage from leaking pipes
Contents insurance covers all your personal belongings, this generally includes:
Clothing Electrical goods Furniture Jewellery
Different policies offer different levels of cover but generally, you will be covered against fire, flood and theft.
The Benefits Of Buildings & Contents Insurance
There are many benefits that go along with buildings and contents insurance. Some are crucial and some are there to offer you peace of mind. Here are some the benefits of buildings and contents insurance:
One of the biggest benefits is that your investment will be protected, with a good insurance policy the thought of anything bad happening to your home will be erased as the insurance gives you the ability of fixing it. Of course, the insurance does not cover every incident but it does take a lot of things out of the equation.
Another benefit is that you can get a good policy for a low monthly premium when you choose the correct one. Ensure that you check out the rates before you invest in a property or policy.
Having these insurance policies will minimise the stress level you have to deal with when it comes to the condition of your home. You are much better off having a good insurance policy rather than having one which is not going to cover much.
If you would like to find out more regarding the benefits of property insurance, call us today.
Here at Total Finance UK Ltd, we are fully knowledgeable and experienced in all aspects of property insurance. If you would like more information regarding the types, costs and benefits of property insurance, please don’t hesitate to contact us today on
020 8695 7548.