Thursday, 21 March 2013

Building and Contents insurance in London

Building and content insurance appear under the banner of home insurance. While contents insurance makes reference to a cover of damages or loss that might occur to one’s personal possessions that are contained but unattached to a particular building or structure, building insurance covers any damages or loss that might occur to the building or house itself, which stem purely from unforeseen circumstances. Both contents and building insurance can be applied separately, but numerous home owners deem it appropriate to obtain these two types of insurance as a blended package.

Buildings insurance:
This insurance provides indemnity to your house in the event of a disaster, whereby your house is severely damaged to the extent that it requires to be entirely rebuilt. The factor which gave rise to the damage must have been completely beyond your control; for example, storm or flood damage, a major fire, smoke or explosions, water leakage/burst pipes, subsidence, or third party vandalism or damage etc. Mortgage providers will insist that you take out this cover, to enable them recover their losses in such events. It is like a type of security or collateral for the loan that they have given to you.

Contents insurance:
This covers all items in your house which do not constitute part of the property itself; for example, furniture, jewellery, appliances and clothing. Most of the available contents insurance policies will even cover aspects like the contents of your refrigerator and freezer! The cheapest type in this category is indemnity insurance. This cover would normally restore exactly what was there before. So, if you claim for a washing machine that was already three years old, you will be given a replacement washing machine that is three years old. The more expensive "new for old" option will give you a brand new replacement of whatever gets damaged or stolen. Contents insurance will cover you in most of the same situations as buildings insurance, but also includes theft. Again, any of these perils must have been beyond your control.

The Importance of contents and building insurance:
Some mortgage suppliers will make this type of insurance compulsory when you take out a mortgage with them, to cover their loan. Otherwise, this insurance is highly recommended, to protect you against unforeseen circumstances. Virtually every home in the country would have this type of insurance just for that reason; and it would ultimately be extremely costly, if you abstain from taking this type of insurance.

Unlimited cover ensures that you secure compensation for damages to your house or content arising from events including: storm, floods, fire, lightening or explosions, fallen trees or branches, subsidence, drag or landslip, breakage of glass or sanitary fittings, damage from escaped water or oil, shock caused to the house by animals, vehicles or aircraft etc. There is a range of optional extras that you can include to your insurance package, but at an additional cost. You can best discourse this with your insurance provider.

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