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
Contents vs. Structure
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 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);
Is it best to get buildings and contents insurance together? ›
You can get it separately, but it's often cheaper to get a combined buildings and contents policy. Renters. Don't assume you're covered by your landlord. Compare contents insurance for tenants and renters.
What is the difference between personal property and contents? ›
Personal Property, also referred to as “contents coverage,” is the term insurance companies use to collectively define the things you own inside your home.
What does contents insurance cover you for? ›
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.
Are ovens covered under contents insurance? ›
Standard home contents insurance only tends to cover your appliances if they're damaged in a natural disaster or another insured event. Specific home appliance insurance is not part of your home insurance. It covers white goods bought from a retailer for breakdowns and accidental damage.
How is contents coverage determined? ›
The amount of coverage you need is determined by the total value of the possessions you want to cover. Putting together an inventory of all of your belongings is the logical first step in getting the right policy.
What is an example of content insurance? ›
For instance, if a homeowner's furniture and clothing is damaged in a blaze, or the home is burgled and a computer is stolen, contents insurance may help to cover that loss.
What does content mean for insurance? ›
This coverage is sometimes known as "contents insurance," but is usually described in most insurance policies as personal property coverage. 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.
State Farm is the cheapest home insurance provider on our list, with policies averaging $174 per month, so we named it our pick for new homeowners.
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.
How much contents insurance do I need? ›
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.
Are kitchen appliances included in contents insurance? ›
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 property rights do people have? ›
Property rights give the owner or right holder the ability to do with the property what they choose. That includes holding on to it, selling or renting it out for profit, or transferring it to another party. Property rights define the theoretical and legal ownership of resources and how they can be used.
Which event is not covered by a homeowners policy? ›
Most catastrophes are covered. For example, wind damage from hurricanes or tornadoes is covered as a windstorm peril. But, flood damage and earthquake damage are NOT covered by a standard homeowners policy.
What does content insurance include? ›
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.
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.
