Home Content Insurance and Home Insurance are two different forms of Insurance. It is important to know that they do not always cover the same things.
Usually, people opt for a combination of both. But if you opt for either of the two, you should definitely understand the difference Home Content Insurance and Home Insurance.
What Does Home Insurance cover?
Home Insurance, also known as Building Insurance or Homeowner’s Insurance provides cover on the structure or building of the house. This includes the floor, walls, bricks, windows and roof. In other words, it covers all the immovable structures of your home. It also includes the permanent fixtures and fittings such as baths and toilets.
Permanent fittings like wardrobes, fitted kitchens and other decorative aspects are also included in this type of insurance. While it usually also covers gardens, garages and greenhouses, you should always better to confirm it with your insurance provider.
What if you build an extension to any part of your house? Talk to your insurance provider to make amendments on your insurance coverage to reflect the changes. It is a necessity if you are taking a home loan.
Home Insurance is a life saver in case your home gets destroyed or damaged by a natural calamity or disaster. Your home will be insured against fire, flood, torrential rain, and weather nuisances.
However, home insurance is only for homeowners, it’s not available for rental properties.
What Does Home Contents Insurance Cover?
On the other hand, Home Contents Insurance, also known as Household Contents Insurance or Household Goods Insurance covers all the household goods that are not covered by Building Insurance. It includes everything you own, including everything from televisions to tools.
Make sure your policy covers the garden tools and equipment if you need it. If you want to stop thinking about the loss of replacing things you own, go for Home Content Insurance instead. This helps to safeguard you from the stress of losing your valuables.
Content Insurance is not a legal requirement, but it does help you recover all your valuables in case of theft and damage from natural disasters.
While applying for Household Insurance, you need to discuss and disclose the value of all items you intend to cover under the insurance policy.
Start by making a list of all valuables that you own. This will help determine the premiums required. Additionally, this will ensure that you can make a claim for these items should anything happen to them.
Unfortunately, most people won’t get the actual amount claimed from the insurance companies. This usually happens when they underinsure their home contents at the time of content disclosure and evaluation. Make sure that you evaluate the goods carefully while getting the contents insurance.
Which policy Is Best For Me?
A great way to know the difference and importance of each policy is by “turning the home upside down”. Imagine literally flipping your house over, anything that falls out can be covered under Content Insurance.
The structure which remains intact even after turning it upside down would be covered under Home Insurance.
In many cases, a combination of both Content and Building Insurance works best, as it covers everything from structure to contents. In case you are renting a house, check if the building is insured by the owner or not. It’s not a mandate, but for your own satisfaction.
While choosing a coverage for your peace of mind, choose wisely and select the policy which caters to all your needs.
*The advice offered in this column is intended for informational purposes only and not intended to replace or substitute for any professional, financial, legal, or other professional advice. If you have specific concerns or a situation in which you require professional help, you should consult with an appropriately trained and qualified adviser.