What Are Building and Content Insurance?

Taking a policy cover for your property is one of the most important decisions one can take. This is true, whether the property is your current residence or a rental property. There are two options available. You may opt to purchase a building insurance and a content insurance separately. Alternatively, you may decide to buy a combined insurance policy.

Building insurance covers the owner of a building for any damage that may occur on it. It mainly covers the permanent fixtures in your property, such as windows, doors, roof, walls, floor, and ceiling. In addition, it may also include structures outside of the building such as the fence and the garage. It may also include the permanent and temporary fixtures and fittings of the building including built-in cabinets, wardrobes, interior decorations, underground tanks, drainage pipes, and cables among others.

The building insurance policy must also cater for the costs of rebuilding such as demolition costs, architects fees, cost incurred to clear the building site, among other costs. The damage to the building or property could be due to a number of events such as fire, theft, destructive weather phenomena like floods, lightning, hurricanes, and tornadoes. Other destructive events include earthquakes, explosions, damage by vehicles or airplanes, falling of a lamppost, pole, or tree, freezing or bursting of the plumbing system (part or whole). Making sure that you have Building and Content Insurance is the best way to ensure you are covered.

Content insurance, on the other hand, is insurance that covers damage to possessions inside a persons house or property. Here, possession refers to anything that is not permanently attached to the house or building. Some personal possessions may include clothing, furniture, carpets, entertainment systems, computers, and any other thing of value. The cover may at times extend to things stored or kept in outer buildings, or lawns.