Building Insurance: Coverage from hazards

by Guest » Wed Oct 29, 2008 05:52 am
Guest

If you are the proud owner of a home you must have building insurance to keep it covered in case of any harm. Your mortgage lender will also require you to have this insurance so that their money does not get trapped if your home suffers any kind of damage. Building insurance protects your home and saves you the cost of repairing in the event that your home faces any physical damage.

What does building insurance cover?

The structure of your home is what will be covered by building insurance. Usually building insurance and contents insurance are bundled together. Insurance companies often offer discounts if the two types are purchased together. Building insurance generally covers the cost of repairing or rebuilding your house. The structure of the building is covered. This includes permanent fittings and fixtures like wardrobes, kitchens, bathroom suites as well as toilets.

Some policies also extend the cover to outbuildings like greenhouses and garages. If it is agreed upon by the policy terms, then some companies would also cover fences, walls, paths and swimming pools. However, you may have to pay some extra money as premiums for that.

What are the risks covered in building insurance?

Building insurance usually covers any damage to the house caused from fire, flood, storms, earthquake and explosions. Your property will also be covered from theft and destruction, damage from falling trees, collision by vehicles, leakage of water from any pipes or tanks or even oil leakage is covered.

If you have to shift to a temporary location because your home (property) has become unliveable and needs repairing or rebuilding, your building insurance will bear the cost of such temporary shifting up to a certain level.

Are there any exclusions in building insurance?

Building insurance does not cover every loss that you might face. Certain losses are only partially reimbursed and you (policyholder) will have to pay any excess amount that may be required. Building insurance normally excludes:
  • Frost damage
  • Contamination from waste or nuclear fuel
  • Terrorist attacks
Terrorist attacks can, however, be covered under an additional policy.

What is the difference between building and contents insurance?

Building insurance is meant to cover the structure of your home from damage. However, if you have to protect the contents of your home from damage, you need to buy contents insurance. If you have building insurance and no contents insurance, the contents of your home will not be covered. A very important factor while getting contents insurance is the value of the goods to be covered.

Building insurance is best for those who own a building. If you are a renter, then your landlord must have building insurance, not you. However, you must definitely have contents insurance if you want to keep your valuables covered. Your landlord's building insurance will not cover any of your property. Only the common property will be covered. When getting building insurance carefully weigh your options and get the right insurance.

Related Readings

Are there any differences between the contents insurance and building insurance? Is it really necessary?

Total Comments: 18

Posted: Wed Oct 29, 2008 06:05 am Post Subject:

Yupp, both content and building insurance are actually two distinct categories of home insurance. The valuables inside your home are protected through the contents insurance in the event a burglary or an accident takes place. Building insurance on the other hand, covers properties concerning the physical structure of your home eg. doors, windows, driveways, roof etc. Crossbreed

Posted: Wed Oct 29, 2008 09:22 am Post Subject: building insurance different from content insurance

Are there any differences between the contents insurance and building insurance?

A true homeowners policy will have personal property coverage, usually about half the dwelling coverage...

Is it really necessary?

only if you want to protect your structure and your personal property from loss..if you don't then no it's not necessary...fool hardy not to have it yes, but necessary no, but no complaints when you're left with nothing.

Posted: Wed Oct 29, 2008 10:47 am Post Subject: building insurance

Is it really necessary?


It is normal for most of the mortgage lenders to push you towards building insurance. Sometimes they would make it mandatory for you to opt for it. I think at times it is a much better option, since its a one-time investment.
Contents insurance is certainly not mandated by anybody..but taking into account the number and worth of valuables back home you may opt for it!
Roddick

Posted: Wed Oct 29, 2008 11:23 am Post Subject: building insurance and contents insurance

Its quite evident that content insurance covers only the content of the policy holder, it however will not cover the damages to the building or any commonly held property. Its suggested that the homeowner should purchase both the content and the building insurance for full protection.

The contents within the house determine the content insurance rate, hence, it'd require constant monitoring of the inventories to ensure enough coverage for the items. The homeowner should include any new purchase to the insurance policy for better protection.

~Jeremy

Posted: Wed Oct 29, 2008 12:17 pm Post Subject: building insurance

Hi,
It is always right to shop for the kinda insurance that you're looking for. I'd not advice you to go to your mortgage lender at all!
I'd never believe him to be the right person for the right offer.
But believe me, if you're in a rented house your landlord might just be of some help to you.
Regards, Fatman

Posted: Wed Oct 29, 2008 02:29 pm Post Subject: building insurance and contents insurance

I really don't understand why you wouldn't want either one. You want to insure your "stuff" so contents is necessary.

If you have a mortgage, the mortgage company will insist on insurance. If you have paid off your mortgage, why would you not want to insure the building. This is where a building insurance would come into play.

If the building burns to the ground, and you don't have building insurance, you will have nothing.

Posted: Wed Oct 29, 2008 04:23 pm Post Subject: building insurance or content insurance?

If you're not a homeowner ( I rent an apt..) can you still get this Content Insurance? I never heard of them. Is it worth it? Interesting. Learn something new everyday..LOL

Posted: Wed Oct 29, 2008 04:30 pm Post Subject: building insurance or content insurance?

ABSOLUTELY! It's a renters policy and no one should not have one! they are pretty cheap they cover your contents/personal property they also have general liabililty coverage...

Posted: Wed Oct 29, 2008 04:35 pm Post Subject: building insurance

Renter's policy is uber-cheap. I've seen 25K for as low as $15.00 per month. Unless you don't own the building would you really need building insurance? I wonder?

Posted: Wed Oct 29, 2008 09:03 pm Post Subject: building insurance and content insurance

Should I just ask my local agent about Content Insurance? Can I get it from the same insurance agent I use for my vehicle? thanks for the tip.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.