Buildings insurance
Building Insurance is compulsory when buying a home with a mortgage. This covers the building, fixtures and fittings.
It is not usually required if you are buying a flat, as this is normally arranged by the freeholder.
Did you know that buildings insurance is required at exchange of contracts on a purchase? Even though you won’t normally have moved in at that stage.
Contents Insurance
Contents insurance covers your personal belongings within the four walls of your home. Anything you could pick up and take with you, should you move, is usually covered under contents cover. The amount of cover offered by providers is usually in excess of what you need, and this is done to avoid being underinsured. Whilst your policy may state cover of £100,000, for example, it really means “up to” depending on what the total should be in the event of a total loss.
If this came to £50,000 then that would be the amount paid minus any excess. The whole principle of insurance is to put you back in to the position you were in before a claim.
Buildings Insurance
Contents Insurance