Building Contents Insurance

There are many different types of home and building contents insurance available for those who rent or own their home or office space.  It is important to understand the differences between the varieties of insurance coverage available.  If financing a home or office then proof of insurance purchase is required at the time of closing on the property.  The standard required coverage includes that for the structure and its contents.  There are differences between building insurance and contents insurance. 

Building Insurance

When you think about building insurance, keep in mind that this insurance is designed to protect the owner from any loss or damages to anything that is attached to the building in some way.  Some policies include coverage for land under this type of policy as well.  Items considered to be attached under some policies include kitchen cabinets, appliances, bathtubs, and sinks among other things.  When purchasing the insurance policy it is important to have a thorough understanding of what is covered and what is not.  If you are also purchasing a contents policy, it is a good idea to see if any of the items inside the home are to be considered covered under the building policy as well so they can be removed and shown on only one policy.  This will decrease the premium paid because you will not be paying for the same type of coverage on two different policies.

Content Insurance

Content insurance is protection from loss to contents of the home or business.  The contents are the items that are moved around freely or that can be easily removed.  These items include televisions, computers, clothing, furniture and jewelry.  Some content loss policies will also cover items that are kept outside the home.  Be sure to ask the agent of any items outside the home will be covered under the same policy and if so, it is important to understand what those items are.  Contents insurance is an important policy to carry because if the home and its contents are lost due to fire, it could add up to quite a chunk of money when it comes to replacing everything out of your own pocket. 

The premiums for building content insurance vary for many different reasons.  In order to prevent the over insuring of your items, it is a good idea to have an appraiser come to your home and appraise all of your belongings, both inside and outside of the home.  When you are shopping for homeowners insurance the premium is based on the replacement cost of your home, the same reasoning applies to building and content insurance.  When purchasing a policy be sure to have the contents covered listed in detail so you understand what your coverage is for and any deductibles you may have for claims. 

We accumulate everything that fills our homes over time, and we do not realize how much it would cost to replace all of it if it were lost until it is gone.  Content insurance is peace of mind that you will be able to rebuild your life if your home and possessions are lost.