There are three types of house insurance plans in UK: Building, Contents and Specialised plans. The Building insurance covers the structure while the Contents insurance covers the items in the home. Specialised plans are tailored for specific properties that face unconventional or increased risks. Almost all insurance companies offer all three plans. In fact, some building insurance quotes include free contents cover. Here's more information about these plans.
A building insurance quotation typically covers the permanent property structure including the land on which the property stands, roof, walls, windows, wiring, fitted kitchens, gates, swimming pool, etc. A comprehensive building plan also covers the cost of alternative accommodation in case the insured property becomes uninhabitable. Cost The amount of buildings cover depends on the "rebuild" cost of the property and is assessed by a surveyor or an estimation service. This value calculates how much would be spent in rebuilding the entire house, including labour, plumbing, electrical, architectural, and other related costs. In case of any mishap, the claim cannot exceed the rebuild value. Caution It is important to buy adequate cover because property values and the cost of construction keep pace with inflation and the insured must not find himself without financial support just in case his home is destroyed. Over-insurance is also not required because the insurance company will pay no more than the repair or rebuild value.
Contents and Specialised insurance
Contents insurance Contents insurance covers items like furniture, electronics, decorations, personal items, perishable items, and valuables. Contents insurance compensates the insured if these items are lost or damaged due to fire, storm, flood, theft, earthquake, accidental damage or explosion. Others Note that portable items like laptops, iPads or cameras may need extended cover. Additionally, some Contents plans cover festivals or special family occasions when there is a dramatic increase in the number of valuables stored at home. The sum insured depends on the declaration and honest valuation made by the insured which is verified by the insurance company. It is possible to buy Contents insurance only without buying a buildings cover. Specialised insurance Sometimes regular buildings cover only does not apply. For example, on caravan homes, holiday homes, thatched roof homes, etc., insurance companies offer specialised insurance cover for such different variety of customers. Landlords can buy Specialised Landlords insurance plans or Buy To Let Home insurance plan to safeguard their homes. Policies Specialised insurance policies too cover both home and contents. Each policy is customised to the insured person's needs. These policies tend to carry a higher rate of premium than the regular policies, especially specialised policies that insure against damage caused by tenants and guests.