There are two types of house insurance, buildings and contents cover.
Buildings insurance covers the structure of your home, so the roof, walls and windows. It also includes the permanent fixtures like your bathroom and kitchen fittings. This can extend to outdoor buildings eg garages, sheds and greenhouses. Buildings insurance policies will vary, but they should all insure your home in case of fire, storm, flood, subsidence, burst pipes, theft and falling trees. Some insurers offer extra cover if you need it, though this will normally come with an additional premium. Though it’s not a legal requirement, most mortgage lenders insist that you get buildings cover before they let you take out a mortgage.
Contents Insurance covers your contents.
If you think about the amount of belongings that you own, you’d realise how much it would cost to replace everything – usually tens of thousands of pounds. A contents policy protects your belongings from theft and damage from fire and flood – from your clothes and games to the exercise bike still in your garage. It is not a requirement to have contents insurance, but it helps if you have to replace a smashed TV, or your house is flooded.
*The plan will have no cash in value at any time, and will cease at the end of the term. If premiums are not maintained, then cover will lapse.