Buildings and contents insurance is in fact two different insurance policies that are often taken together. However both can be set up on an individual basis if required.
Buildings insurance protects your house the bricks and mortar against insured risks such as fire flood subsidence earthquake etc. The mortgage lender will insist that the property to be mortgaged has building insurance in place as if the property suffered from one of the range of perils then this could seriously affect the value of the security.
The insurance value of the property is determined by the surveyor during the mortgage application. It is important not to underinsure your property as this can result in the amount of payout on a claim being reduced accordingly.
Contents insurance protects your belongings and furniture also known as chattels against all of the above and also burglary theft etc.
There is a wide range of policies available depending on the level of cover you require. Some policies will replace your items taking into account its age, and other will replace the items with brand new ones (New for Old)
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