There are three main types of home insurance: Buildings Insurance, Contents Insurance (can also have a combined Buildings and Contents Insurance) and Landlords insurance.
Unlike your car, you can legally own a home without Home Insurance, however if you finance your home with a mortgage, your lender will most likely require you to have Home Insurance coverage to protect your home in case of damage cause by unforeseen circumstances, such as fires or natural disasters.
Buildings insurance covers the cost of repairing damage to the structure of your property.
Building Insurance includes the walls, windows and roof as well as permanent fixtures and fittings such as baths, toilets and fitted kitchens.
This policy will pay out after a set period of time, for example between 30 to 90 days after redundancy.
As a general rule, Buildings Insurance covers the cost of rebuilding your house from the ground up.
Contents Insurance, covers the cost of replacing your belongings in your home if they are damaged, destroyed or stolen.
Generally, your ‘contents’ are defined as the items that you would take with if you moved home. These include but are not limited to:
Furniture: beds, sofas, wardrobes and dining tables and chairs
Kitchenware: cutlery, cookware, microwaves and kettles
Entertainment: video games, toys, DVDs and CDs
Soft furnishings: cushions, curtains and bedding
Electricals: TVs, laptops and game consoles
Clothes and jewellery
Ornaments and antiques
Contents Insurance can be taken as a standalone policy or as part of a combined Home Insurance policy with Buildings Insurance.
Landlord Insurance is similar to Home Insurance but is specifically designed to cover rental properties.
Home Insurance is typically not enough to cover a buy-to-let property, for example Home Insurance will often only cover properties that have been uninhabited for up to a month, whereas landlord insurance will usually allow a home to be empty for three months. This flexibility is useful as it allows for void periods between tenancies.
Types of Landlord Insurance
Landlord Buildings Insurance
This covers damage to the structure, such as from a fire or a flood, and the cost of making repairs.
It also covers the cost of rebuilding the property in the event of extreme damage.
Landlord Contents Insurance
This kind of insurance is especially important if you will be renting out a furnished property.
It covers the cost of replacing or repairing furniture and fixtures such as carpets, kitchenware or electrical items such as TVs.
It will not pay out for any damage to items that tenants bring to the property – they will need to take out their own contents insurance if they want protection for their possessions.
Landlord liability insurance
This will cover you in the event of a tenant or a visitor to the property being injured and you being held responsible.
Beyond basic cover, there are additional features you can get with Landlord Insurance.
Rent guarantee insurance: this will protect you against a loss of income from tenants not paying their rent.
Legal expenses cover: this will cover your costs if you're involved in a legal dispute with your tenant.
Home emergency cover: if your property's supply of gas, electricity, heating or water is , this can cover the cost of repair and help to get it fixed more quickly.
We at Homestraight Mortgages Limited can offer our services through our advisers who can assist & help you find the best plan which meets your requirements.