Home insurance doesn't actually exist as a policy. Whilst this might seem like an outrageous statement to make, home insurance is actually a conglomerate of two other types of insurance, buildings insurance and contents insurance. Whilst these are often sold together, they protect different things and if you make a claim you will most likely claim from one policy or the other. So what is covered by which policy, and what is not covered at all?
One of the major problems for insurers is the weather, whether that be from flood, storms or high winds. The ABI (Association of British Insurers) had threatened not to insure certain areas at high risk of flooding but a deal was struck last year with the government to ensure that wherever you are in the country you will still be able to get home insurance.
Therefore, all buildings insurance policies still cover for damage caused to the structure of your property by the weather. They will also cover for things like kitchens and bathrooms. Any claim for damage to fitted elements or to the structure of your building falls under the buildings insurance banner.
However, if you suffer damage that is so extensive some of your possessions are broken or needing repair or replacement you will have to claim on your contents insurance, or both. This happens most commonly when a pipe cracks and water spreads through your property. Thankfully, buildings insurance covers for any damage caused by freezing water in your pipes.
Almost all policies will cover you should something fall from your property onto a neighbor's property and cause damage. Many policies will also have a clause that pays for alternative accommodation for that neighbor if the damage is particularly severe. This will be claimed from your buildings insurance policy.
A basic rule of thumb is that if you would take it with you when you move house then it is included under contents insurance, and therefore any damage should be claimed from that policy.
However, most people take garden furnishings with them when they move and it's unlikely that your insurance company will pay for damage to such furnishings, or by any damage caused to objects outside by things like frost. You can negotiate separate policies for such items. Also remember that if you suffer damage due to wear and tear, you'll have to pay for it not the insurance company so keep your property well maintained.
Home insurance is a vital commodity, especially with the increasingly volatile British weather. It does not, however, have to expensive and if you shop around you can get good deals surprisingly cheaply. Take a look at Co-Operative Insurance for some good value policies at the moment.
