Is Building Insurance the Same as Home Insurance? Ultimate Guide to Building Insurance and Home Insurance

If you own a property, you might have heard of the terms building insurance and home insurance.

But do you know what they mean and how they differ?

An image of Home insurance
Home insurance image[PPHOTO COURTESY OF JUBILEE]
In this article, we will explain the difference between building insurance and home insurance, and why you might need both or either of them to protect your property.

What is Building Insurance?

Building insurance is a type of home insurance that covers the structure of your property, such as the walls, roof, floors, windows, doors, and permanent fixtures like kitchen units, bathroom fittings, and built-in wardrobes.

Building insurance also covers outbuildings such as sheds, garages, and greenhouses.

Building insurance protects you from the cost of repairing or rebuilding your property if it is damaged by events such as fire, flood, storm, vandalism, subsidence, or burst pipes.

The amount of cover you need depends on the rebuild cost of your property, which is not the same as the market value.

What is Home Insurance?

Home insurance is a general term that can refer to building insurance, contents insurance, or both.

Contents insurance is another type of home insurance that covers the items inside your property, such as furniture, appliances, clothing, jewellery, and electronics.

Contents insurance protects you from the cost of replacing or repairing your belongings if they are stolen, damaged, or destroyed by events such as fire, flood, storm, vandalism, or burst pipes.

The amount of cover you need depends on the value of your belongings. You can also choose to add extra cover for items that are particularly valuable or that you take outside your home, such as laptops, smartphones, bicycles, or jewellery.

Do You Need Both Building Insurance and Home Insurance?

The answer depends on whether you own or rent your property, and whether it is furnished or unfurnished. Here are some scenarios to help you decide:

  • If you own and live in your property, you should have both building insurance and contents insurance to protect your property and your belongings.
  • If you own and rent out your property, you should have building insurance to protect your property. You might also want to have contents insurance if you provide any furniture or appliances for your tenants. However, your tenants are responsible for insuring their own belongings.
  • If you rent and live in a furnished property, you do not need building insurance as it is the responsibility of your landlord. You might want to have contents insurance to protect your own belongings and any items that belong to your landlord that you are liable for.
  • If you rent and live in an unfurnished property, you do not need building insurance as it is the responsibility of your landlord. You should have contents insurance to protect your own belongings.

How to Choose the Right Building Insurance and Home Insurance

There are many factors to consider when choosing the right building insurance and home insurance for your needs. Some of them are:

  • The level of cover: You should choose a policy that provides enough cover for the rebuild cost of your property and the value of your belongings. You should also check what events are covered and what exclusions apply.
  • The excess: This is the amount you have to pay towards a claim before the insurer pays the rest. You should choose an excess that you can afford to pay in case of a claim.
  • The features: You should look for features that suit your needs and preferences, such as accidental damage cover, legal expenses cover, alternative accommodation cover, or home emergency cover.
  • The price: You should compare quotes from different insurers and look for discounts or offers that can lower your premium. You should also consider how you pay for your policy: paying annually can be cheaper than paying monthly.

Conclusion

Building insurance and home insurance are not the same thing. Building insurance is a type of home insurance that covers the structure of your property.

Home insurance can refer to building insurance, contents insurance, or both.

Depending on whether you own or rent your property, and whether it is furnished or unfurnished, you might need both or either of them to protect your property and your belongings.

 

Leave a Comment