Difference Between Contents and Structures Insurance (2024)

FAQs

Difference Between Contents and Structures Insurance? ›

Contents vs. Structure

Structure and content insurance cover losses from calamities such as earthquakes, storms, typhoons, landslides, fire, floods, pipe bursts, explosions, strikes and air crash damage. The contents are covered against loss due to burglary or house break-ins.

Other structures coverage is the part of a homeowners insurance policy that helps pay to repair or replace structures other than your home, such as a fence, if they are damaged by a covered risk. For instance, if a tree falls on your detached garage, other structures coverage may help pay for repairs.

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.

All fitted carpets, as long as they aren't glued in place, should be included in your contents insurance. Moveable rugs and mats are also covered. Flooring that's glued or nailed down is usually covered by buildings insurance as it's considered part of the fabric of the building.

Parts of an insurance contract. Declarations - Identifies who is an insured, the insured's address, the insuring company, what risks or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy number, the policy period, and the premium amount.

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.

There are three basic types of structures: shell structures, frame structures and solid structures. But some structures are a combination. Most containers used to hold liquids or small solids are shell structures.

Dwelling coverage, also known as home structure coverage, helps protect the physical structure of your home, like the walls and roof.

What comes 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.

It is a good idea to take out home contents insurance to cover your possessions against fire, theft and other risks, such as accidental damage. If something happens to destroy or damage your possessions, it can cost a lot of money to replace these items.

Contents vs. Structure

For instance, furniture, appliances, artwork, electronics and clothing are all contents. Structuralitems, on the other hand, are things that are attached to the apartment or unit. Hardwood or tile flooring, counter tops, and other cabinetry are all considered part of the building.

Put simply, you should include all the possessions in your home when calculating how much cover you need. As a rule of thumb, these would be all the things you'd take with you if you moved. (So, only exclude things like a fitted kitchen or bathroom suite). But you should include carpets and lighting.

It includes everything you would take with you if you moved home including your furniture, kitchen appliances, curtains, bedding, clothing, television, computing equipment and jewellery. It is important that you get your contents sum insured right, as this is the maximum your insurer will pay out if you claim.

Contents insurance generally won't cover breakdown of your appliances, but will cover things like theft, fire or water damage. Accidental damage may also be included, or you might have paid to have this added to your policy – it's worth checking your T&Cs.

Contents insurance helps pay to replace or repair your personal belongings if they're stolen or damaged by a covered peril, such as a fire. So, if someone breaks into your home and steals your laptop, or your clothing and furniture are ruined in a fire, you may find that contents insurance helps cover the loss.

Protect the foundation of your home

Dwelling coverage, also known as home structure coverage, helps protect the physical structure of your home, like the walls and roof. It can also cover a structure that's attached to your home, like an attached garage.

Coverage B, also known as other structures insurance coverage, is the part of your homeowners policy that protects structures on your property not physically connected to your home, such as a detached garage, storage shed, or gazebo.

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.