Home Insurance Explained

Home insurance can sometimes better be understood by calling it as either:

Buildings Insurance

OR

Contents Insurance

So what does the HOUSE Insurance cover? It really depends on each policy and its detail.

Most policies will cover structures on the property – the building, the garage and the fences. Often this can be extended to cover retaining walls, swimming pools or saunas but this is where it is careful to make sure the amount of cover is not capped.

Care also needs to be taken to see if things like major adverse events such as fire, theft or flood are excluded.

Contents insurance on the other hand, also generally referred to “home insurance” specifically insures the contents inside the buildings. Usually the policy covers the policy holders belongings when they are at home or temporarily somewhere else in the country. The policies are normally either just basic policies or comprehensive policies. It’s important to know exactly what, how and when these policies work.

It is normally a requirement for a mortgage to provide evidence that a property is covered.