Building and contents insurance coverage are two different types of owner insurance protection. Building coverage is just what the name states, insurance that protects the building structure only. Contents insurance covers the value of everything that is placed inside a building or at least it should. You can acquire both types of coverage as separate policies if you like. However, many prestigious providers will sit down with home-owners doing a thorough examination of cover needs for both the building, meeting mortgage lender needs, as well as helping assess contents value and cover available for your belongings.
Typically, building insurance pays for the replacement cost or repair of a structure when damaged by natural causes covered in your policy, such as lightning strikes, hurricanes and other storms. A need exists to question what natural disasters will be covered under a policy. Often, flood insurance is normally not covered in standard building coverage and must be purchased separately.
Contents insurance is a policy designed to provide coverage for your belongings and building's contents. Typically, contents insurance will cover furniture, floor coverings, wall decor, appliances, clothes and more. This is type of insurance is used to protect a home-owner, or renter, from losing valuables in a disaster. There are different levels of coverage that would include compensation for depreciated value only or full replacement cost for covered items based on current market pricing.
Some providers require up-to-date inventory lists when adding valuable content such as antiques and jewelry. Contents insurance would normally cover any burglary leading to vandalism or theft of items covered in your policy as well as damage due to natural disasters.
The key objective when consulting with your building and contents insurance provider is to make sure coverage is in place so you are fully protected against loss.
