When you compare buildings and contents insurance, it’s helpful to think about what could be considered part of the fabric of the property (‘buildings’) and what could reasonably be removed and taken to another property (‘contents’).
This means that the floor, roof, windows and walls of your property are covered by buildings insurance, while the furniture, appliances and decorative items are covered by contents insurance.
While this seems quite straightforward, some parts of your property can be more difficult to define. Insurance policies usually consider fixtures and fittings (for example a fitted kitchen or a bathroom suite) as buildings, while carpets are usually covered under contents insurance. Laminate flooring is likely to be considered part of the building, but it’s worth checking your policy to make sure.
Depending on your policy, external structures like garages and outbuildings may also be covered by your buildings insurance.
If you’re buying landlord insurance, only items that belong to you are covered under the contents part of the policy. Your tenants will need to take out their own contents insurance to cover anything that belongs to them.
FAQs
The difference between buildings and contents insurance is that buildings insurance covers the physical structure of the property including the walls, roof and floors, while contents insurance covers items inside the property, like furniture and freestanding appliances.
What is covered under contents insurance? ›
Contents insurance covers your household items and personal belongings if they're damaged, lost or stolen. This can include your furniture, clothes, computer, fridge, television, tools and jewellery. If you own your home, you can bundle your contents insurance with your home insurance.
Does building insurance cover everything? ›
What Does Building Insurance Cover? Building insurance covers the structure and the fixtures inside your building–including any sinks, bathtubs, pipes and bathroom toilets. Garages, sheds and outside fences may also be covered under your policy.
What does building coverage mean in insurance? ›
Building coverage includes buildings or structures and any completed additions, which are listed on the declarations page of a commercial policy. Permanently installed fixtures, machinery, and equipment are also insured as a part of building coverage.
What are buildings' contents? ›
Contents includes anything that can be carried away from the building. They are typically personal belongings purchased separately from the building. For instance, furniture, appliances, artwork, electronics and clothing are all contents.
What does buildings insurance cover? ›
What is buildings insurance. Buildings insurance covers the cost of repairing damage to the structure of your property. Garages, sheds and fences are also covered, as well as the cost of replacing items such as pipes, cables and drains. Your insurance should cover the full cost of rebuilding your house.
What is the difference between building and contents insurance and contents insurance? ›
The difference between buildings and contents insurance is that buildings insurance covers the physical structure of the property including the walls, roof and floors, while contents insurance covers items inside the property, like furniture and freestanding appliances.
What is not usually covered by building insurance? ›
Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered. Damage caused by smog or smoke from industrial or agricultural operations is also not covered. If something is poorly made or has a hidden defect, this is generally excluded and won't be covered.
What is the difference between property insurance and building insurance? ›
The same is true for water damage from a burst pipe, or windows broken by a storm. However, building insurance does not cover office equipment or other moveable property, which is why you might also want the protection for your business personal property afforded by standard property insurance.
What are the three main types of property insurance coverage? ›
There are three types of property insurance coverage: replacement cost, actual cash value, and extended replacement costs.
Expert Insight: Ground coverage is calculated by dividing the total built-up area by the total plot area and multiplying by 100 to get a percentage.
Is building insurance the same as liability insurance? ›
Property insurance: protects against loss or damage to tangible property, such as a building or its contents. It typically covers damage caused by fire, theft, and natural disasters. Liability insurance: protects against financial loss from legal claims made against the policyholder.
Which of the following would not be covered under a builder's risk coverage form? ›
A builders risk coverage form provides protection against losses on the building, equipment, and supplies, but not to accidents on the job, the land, scaffolding, and theft. The policy does not cover war, nuclear hazards, extreme weather, or government seizure.
What is the purpose of contents insurance? ›
Contents insurance is designed to protect your household content against accidental damage and disasters – big and small. These include loss, theft, water damage, fires and earthquakes.
What is content insurance cover? ›
Contents insurance protects the things that make your home feel like yours. This includes your bed, sofa, computer, clothes and jewellery. If you ever lost all your possessions in a fire or flood, it would cost a lot to replace them. Contents insurance covers the cost to repair or replace any items that are: Damaged.
What is the difference between property and contents? ›
All property that is not land property is personal property. Examples of personal property include vehicles, merchandise, furniture, tools, clothing, and oil. For insurance purposes, personal property falls into these classifications: “Contents” – referring to the contents of a building (equipment and inventory);
What does basic contents insurance cover? ›
What is home contents insurance. Home contents insurance covers you against loss, theft or damage to your personal and home possessions. It can also cover you if you take items out of the home, on holiday, for example. The insurance covers your own possessions and those of close family members living with you.
What is considered contents coverage? ›
Personal property coverage — also known as contents coverage on a home policy — helps cover the cost of your personal items if they are destroyed, damaged, or stolen due to a covered loss or peril. Personal property includes things like furniture, clothing, electronics, and kitchenware.
Can you claim broken TV on contents insurance? ›
If something happens at your home, like a theft, fire or flood, and your things are stolen or damaged, you can claim for the cost to replace or repair them. For instance, if there's a fire and your TV and games console are destroyed, contents insurance could mean you can claim for the cost of repairing any damage.
Is it worth having contents insurance? ›
Do you need contents insurance? Contents insurance is not a legal requirement, but it's worth having if you wouldn't be able to replace your possessions if they were lost or damaged for some reason, such as a fire or burglary.
