Home Insurance is a type of property Insurance that covers a private residence. It is an Insurance Policy that combines various personal insurance protections, which can include losses occurring to the home, contents, loss of use or loss of other personal possessions of the homeowner.
It may also include Liability Insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory. Additionally, home insurance provides financial protection against disasters.
If you have a mortgage, your lender is most likely going to require you to have Home Insurance, as the lender wants to be sure its financial investment in your home is protected. Your lender should give you a choice of insurers or allow you to choose one yourself. If you are a landlord it is your responsibility – not your tenants. As a tenant you may be responsible for loss or damage to fixtures and fittings.
It is used to describe two very different types of insurance:
- Building Insurance – for permanent fixtures and fittings, like kitchens and bathrooms and;
- Contents Insurance – for things you keep in your home such as personal belongings.
What is Buildings Insurance?
This is a policy that covers damage to the structure of your home such as the walls, floors and roof. It can also cover fixtures and fittings. Your insurance should cover the full cost of rebuilding your house. Building Insurance usually covers loss or damage caused by:
- fire, explosion, storms, floods, earthquakes
- theft, attempted theft and vandalism
- frozen and burst pipes
- fallen trees, lampposts, aerials or satellite dishes
- vehicle or aircraft collisions