Description of Home Insurance

[lee]

Home insurance policies cover both the risk to the home and possessions (Contents) from a range of mishaps. Generally, it covers fire, flood and accidental damage.

There are two broad types of insurance - Building Insurance and Content Insurance.

Buildings Insurance – This covers damage to the structures, fixtures and fittings
Contents Insurance – This covers all the possessions in the property with limits on individual items.

Buildings Insurance cover the cost of rebuilding the house but some policies do not cover the foundation. The foundation is usually not destroyed unless the damage is very extensive. This insurance is necessary because the loss is major and the sums add up to the extend that most people can't afford. The sum insured is not the market value of the building but the cost of reconstructing the house to its original condition, albeit newer than its previous state.

The insured value should include things like the fitted kitchen and bedroom furniture, baths, toilets etc and anything else which is physically attached to the structure of the house. If you could pick the house up and turn it over, anything that didn’t drop out is probably a fixture or fitting.

Buildings cover also covers ‘outbuildings’ like garages, sheds, etc too.

Third party liability may also be included. For example, a fire in the building damage part of the neighbour's wall. This is included in the repair bill too.

Contents Insurance cover belongings from theft or damage by fire, smoke, water, etc. Those items which are fixtures and fittings are excluded because they could be covered more specifically by building insurance.

Homeowners can choose to insure items such as cash kept at home, cameras, television, fridge, etc. Download music and license softwares can also be insured. However, a concious effort of keeping the receipts, etc.. is necessary
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[gaoanan]

Home insurance policies cover both the risk to the home and possessions (Contents) from a range of mishaps. Generally, it covers fire, flood and accidental damage.

Contents Insurance cover belongings from theft or damage by fire, smoke, water, etc. Those items which are fixtures and fittings are excluded because they could be covered more specifically by building insurance.

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What does theft means? When the thief steals a key and gets into the house and stole all the valuables silently, is it still considered theft as opposed to the thief breaking down the door to steal.

[lee]

Home insurance policies cover both the risk to the home and possessions (Contents) from a range of mishaps. Generally, it covers fire, flood and accidental damage.

Contents Insurance cover belongings from theft or damage by fire, smoke, water, etc. Those items which are fixtures and fittings are excluded because they could be covered more specifically by building insurance.

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What does theft means? When the thief steals a key and gets into the house and stole all the valuables silently, is it still considered theft as opposed to the thief breaking down the door to steal.

Quite often, insurance covers only theft as a result of forceful violent entry such as breaking the lock to gain access into the house. However, there are some policies in the market that covers theft without forceful violent entry.

Cheers.

[Tiara79]

The insured value should include things like the fitted kitchen and bedroom furniture, baths, toilets etc and anything else which is physically attached to the structure of the house. If you could pick the house up and turn it over, anything that didn’t drop out is probably a fixture or fitting.

what kind of furniture? only bedroom? or is this insurance also covers other furniture? Thanks.