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House insurance
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Household and Property Insurance
What does Household Insurance do?
There are two types of household insurance policies. Buildings Insurance protects you against damage to the structure of your home together with its fixtures and fittings and Home Contents Insurance protects you against damage or loss of the possessions that you would normally take with you if you moved. Both policies cover you against a stated list of perils for example; fire, subsidence, theft, flood and storm, as well as providing important cover for your legal liabilities as a homeowner and occupier.
What does Buildings Insurance do?
A buildings insurance policy covers both the structure of a property and its permanent fixtures and fittings such as baths and toilets, fitted kitchens and bedroom cupboards. Interior decorations are covered also. Buildings Insurance usually extends to include outbuildings such as garages, greenhouses and garden sheds but depending on your policy boundary walls, fences, gates, paths, drives and swimming pools may not be covered.
There are a number of events that buildings insurance normally covers. These are often referred to as insured perils. Most policies will cover damage to your home by:
- Fire, explosion, lightning or earthquake
- Subsidence, heave or landslip
- Storm and flood
- Theft or attempted theft
- Escape of water from tanks or pipes
- Falling trees or branches
- Breakage or collapse of television, radio signal or satellite apparatus
- Riot, civil commotion, strikes, labour or political disturbances
- Impact by aircraft, other aerial devices, any vehicle or animal
- Escape of oil from heating systems.
Please note that the information provided here is of a general nature only and for more detailed advice on what you are covered for you must refer to your policy.
What does Home Contents Insurance do?
A contents policy covers just about everything you would take with you if you moved home - furniture and furnishings, household goods, kitchen equipment, televisions, video, computer and audio equipment, clothing, personal effects, and valuables up to stated limits.
A wide range of contents policies are available which will provide either replacement as new/new for old or indemnity cover.
If you have a replacement as new/new for old policy you will be paid the full cost of repairing damaged articles or the cost of replacing them with equivalent new articles if they are stolen or destroyed. With an indemnity policy a deduction will be made from your claim payment to account for wear, tear and depreciation of the damaged items.
Most home contents can be insured on a replacement as new/new for old basis but not clothing and household linen. What you can insure under replacement as new varies between insurers and sometimes age limits apply so it is important to check your policy carefully to be sure of what you are covered for. Modern insurance policies are easy to read - many of them have won plain English awards. There is no "small print" and you should read your policy NOW so you understand the level of cover it provides and the circumstances in which a claim can be made. If you need any points clarifying speak with your insurance company or insurance adviser on these matters.
The policy is a contract between the insurer and you, the policyholder, and places legal obligations on both parties. For example, the insurer agrees to cover you against loss, damage or legal liability which may happen during the period of insurance which you are covered for. In return, the policyholder and members of their household must keep the insured possessions in a good state of repair and take all reasonable steps to prevent injury, loss or damage.
Most policies will cover loss or damage while in your home by:
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Fire, explosion, lightning or earthquake
- Subsidence, heave or landslip
- Storm and flood
- Theft or attempted theft
- Escape of water from tanks or pipes
- Falling trees or branches
- Breakage or collapse of television, radio signal or satellite apparatus
- Riot, civil commotion, strikes, labour or political disturbances
- Impact by aircraft, other aerial devices, any vehicle or animal
- Escape of oil from heating systems
There are other valuable aspects to the cover given by your contents policy.
As tenants - many policies provide some cover for your liability for damage to the building.
Please note that the information provided here is of a general nature only and for more detailed advice on what you are covered for you must refer to your policy.
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