What is the difference between buildings and contents insurance?

Buildings and contents insurance can help protect your property and belongings from unexpected events you hadn’t accounted for like a fire, escape of water, extreme weather causing a storm or a flood to damage your property. These unforeseen circumstances can range from a burst pipe to a break-in.

Home insurance is designed to take the stress away and give the peace of mind knowing you are covered and not out of pocket due to rebuild or replacement.

This guide gives you an idea of what is suitable for you to choose.

What is the difference between buildings and contents insurance?

Home insurance is for protecting the structure of your home, while contents insurance is for protecting your belongings in your home.

Your policy can include both but they can be taken out separately if it is more suitable to do so, for example; if you are renting a property, you would just take out contents insurance as the landlord should have sufficient insurance in place (landlord insurance) to cover the building.

Buildings insurance covers the cost of repairing or rebuilding the structure of your home and its permanent fixtures and fittings should they be damaged or destroyed. This includes your garage and domestic outbuildings within the boundary of your home and garden.

Contents insurance covers your household goods and personal belongings like clothes, furniture, curtains, blinds and kitchen appliances (white goods, for example). Contents insurance also covers items inside garages and items within the boundary of your home and garden. In a nutshell, it is everything you would take with you if you moved to a new house.

Why do I need landlord’s insurance? Why can’t I have standard buildings insurance?

Landlords building insurance is a specialist cover and will not be covered under the standard buildings and contents insurance. It helps you to protect yourself, your property and your tenants.

Standard home insurance policies are not designed to cover rental activities, so your mortgage lender will normally ask you to take out a specialist landlord policy. As a landlord you will need cover to protect the structure of the building itself, and contents cover may be required if you leave anything in the property whilst it is being rented out.

Some policies will cover malicious damage caused by a tenant. With landlord insurance you can choose to include optional extras such as Rent Guarantee and legal protection as well as home emergency cover.

What is Rent Guarantee and Legal protection?

Rent Guarantee and Legal protection provides cover if a tenant defaults on their rental payments or was unable to pay some of their monthly rent. It also provides legal cover to cover any legal costs in the event of any disputes.

Next steps…

At Linear Financial Solutions, our protection specialists can help guide you in the right direction and ensure you have the best cover for your needs. Contact our friendly team today to be put in touch with our expert advisors – or speak to your Linear advisor. Email info@linearfs.com or call 0333 240 1101.