Home Insurance – Choosing Buildings and Contents Insurance

Home Insurance

Home Insurance – Choosing Buildings and Contents Insurance

Buildings and contents insurance can sometimes be overlooked areas of home finance. Home insurance for the fabric of the building itself will normally be a requirement for anyone with a mortgage. But once the mortgage has been advanced and the lender’s requirement satisfied, many homeowners simply renew the same policy every year with barely a second thought.

Similarly, most people recognise the value of insuring the contents of their home, but renew the existing cover each year almost by way of inertia. There could be a lot more to choosing the right buildings and contents home insurance, however, that may provide you with far more appropriate cover at a considerably better price.

Buildings insurance

The reason for this being regarded a necessity by most people is because of the sheer value of the property, the cost of repairing it – or even having to rebuild it – if things go wrong, and the wide range of risks to which any property is exposed. These risks might include fire, storms, lightning strikes, flooding, subsidence, vandalism, falling trees and branches and toppled satellite dishes and aerials.

Claims under buildings insurance policies can range from the relatively minor to those of such major proportions that the whole property needs to be rebuilt. For this reason, it’s important to ensure that the home is insured to the full cost of rebuilding it. Depending on the age and location of the property, this is not necessarily the value of the existing building, but the actual cost of building a new one on the same plot of land.

Included in the insurance valuation there should also be provision for loss or damage to related buildings and structures such as the garage(s), patios, fences, swimming pools, paths and the like.

It’s important to bear in mind, too, that circumstances change. A rebuild valuation one year is likely to be different in a few years time, so it could be worth reviewing the buildings insurance to ensure that it accurately reflects current valuations. Some policies will include an automatic increase in the valuation in line with the prevailing rate of inflation, which can help to keep the buildings insurance up to date.

Contents insurance

The Centre for Economic and Business Research conducted a study a while ago suggesting that the average home contained some £44,500-worth of possessions, although the average sum insured was in fact only £35,000.

This flags up at least two interesting facts. The first is that the value of a home’s contents certainly makes them worth insuring against the common risks of theft, loss or damage.

The second is that most people apparently under-estimate and therefore under-insure the contents of their homes. Such under-insurance can lead to huge disappointments in the event of a claim because of the way in which insurance adjusters “average” the cost of replacing even a single lost or damaged item against the total amount insured.

Choosing buildings and contents insurance

There is considerably more to buildings and contents insurance, therefore, than a one-off decision the first time you move into a new home. It’s important to review the level of cover – and what you’re paying for it – on a regular basis, in order to get the right deal at the best price.


Home insurance

Home insurance, also known as homeowner’s insurance or property insurance, is a type of insurance policy that provides financial protection for your home and its contents. It offers coverage for various risks, such as damage to the structure of your home, loss or damage to personal belongings, and liability for injuries or property damage to others.

Here are some key aspects of home insurance:

  1. Dwelling coverage: This covers the physical structure of your home, including the walls, roof, foundation, and attached structures like garages or decks. It protects against perils like fire, vandalism, lightning, or windstorms. Be sure to review the policy to understand what perils are covered and excluded.
  2. Contents coverage: This protects your personal belongings, such as furniture, appliances, electronics, and clothing, against damage or loss due to covered perils. Certain high-value items like jewelry or artwork might have coverage limits, so additional coverage may be needed for those.
  3. Liability coverage: This provides protection if someone gets injured on your property or if you accidentally cause damage to someone else’s property. It helps cover legal expenses, medical bills, and property repair costs.
  4. Additional living expenses: If your home becomes uninhabitable due to a covered event, this coverage helps with additional living expenses such as temporary accommodations, meals, and other associated costs.

It’s important to note that home insurance policies can vary in coverage and cost depending on factors such as the location, value of the home, deductible amount, and the level of coverage you choose. It’s advisable to compare quotes from multiple insurance providers to find a policy that suits your needs and budget.

Remember to carefully read and understand the terms, conditions, and exclusions of any policy you consider, and consider seeking guidance from an insurance professional if you have specific questions or concerns.



Insurance is a way to protect against financial loss. It involves paying a premium to an insurance company in exchange for the promise of payment or reimbursement for certain losses or damages. Insurance can help individuals, businesses, and organizations manage risks and protect against unexpected events.

There are many different types of insurance available, including:

  1. Health Insurance: This type of insurance helps cover the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs.
  2. Life Insurance: Life insurance provides a lump-sum payment to the insured’s beneficiaries in the event of their death. It can help provide financial security for loved ones and cover expenses such as funeral costs and outstanding debts.
  3. Auto Insurance: Auto insurance provides coverage for damage or injury caused by a car accident. It can also provide coverage for theft, vandalism, and other incidents.
  4. Homeowners Insurance: This type of insurance helps protect homeowners against damage or loss to their property, as well as liability for injuries or damage caused to others on their property.
  5. Renters Insurance: Renters insurance provides coverage for personal property and liability for renters.
  6. Business Insurance: Business insurance provides coverage for various types of risks that businesses may face, such as liability, property damage, and employee injuries.

Insurance policies can vary widely in terms of coverage, exclusions, and premiums. It’s important to carefully review any insurance policy before purchasing it and to understand what is covered and what is not.

Insurance companies use various methods to assess risk and determine premiums, including actuarial science, statistical analysis, and underwriting. Factors such as age, health status, driving history, and location can all impact insurance premiums.

In conclusion, insurance is a way to protect against financial loss and manage risks. There are many different types of insurance available, including health insurance, life insurance, auto insurance, homeowners insurance, renters insurance, and business insurance.

It’s important to carefully review any insurance policy before purchasing it and to understand what is covered and what is not. Insurance companies use various methods to assess risk and determine premiums, and factors such as age, health status, driving history, and location can all impact insurance premiums.

Author: Mohammed A Bazzoun


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