BUILDINGS AND CONTENTS INSURANCE is a financial instrument designed to protect you against loss in the event of an accident, emergency or theft. In essence, it makes sure your most valuable asset – your property – is protected so you do not face financial ruin.
There are not many people could watch their home burn to the ground and simply shrug it off. With the average price of a house in the UK now getting close to £300,000, that is a huge amount of money to be tied up in any single asset. And with average earnings around £25,000, it would take the average person nearly 12-years just to earn that amount of cash regardless of living costs and taxation.
So Buildings and Contents Insurance protects you against the property burning to the ground. The Buildings element is what will get the property rebuilt for you. So if the £300,000 home costs £200,000 to rebuild, all you will need to find is the excess on your policy. You choose the excess level, so if you have gone for £250, once you pay that, the insurance company will pay the remaining £199,750 to get the property rebuilt. That is a massive benefit of having insurance.
But you need to make sure you have the right level of insurance in place. If it costs £200,00 to rebuild the property, there is no point getting buildings insurance for £100,000. You will end up having to find £100,000 yourself in a total loss situation. It is the same with over insuring – if you choose £300,000 worth of insurance, you will only ever use £200,000, so you are paying for more performance than you could ever actually need.
Buildings and Contents Insurance also covers the things inside the property. The contents insurance element will protect your possessions. Sofas, computers, phones, televisions, beds, clothes, food in the fridge and anything else you have can be insured against loss.
Add up everything you own and have bought over the years and you’ll soon find it adds up. Games consoles, engagement rings, prescription glasses, bicycles and coffee tables are not cheap. Typically most homes can have between £30,000 – £50,000 worth of contents.
In the burn to the ground scenario, you will only pay your chosen excess to get the contents replaced. We recommend a low excess of around £50. You can even choose new for old cover that is self-explanatory. And if you take contents outside of the home a lot, go for enhanced cover and things like computers can be insured anywhere you go.
To buy good Buildings and Contents Insurance go to The Property Insurer and fill in the quick quote form that takes 5-minutes. You can then compare prices from a panel of UK specialist home insurers and buy online instantly 24x7x365.
The Property Insurer