Do You Need Building Insurance?
Updated: Dec 6, 2021
Did you know that your home is considered a building? If you are the owner of you’re a house, insurance companies consider the home structure as a building. Thus you will need to purchase insurance coverage for its protection. The coverage will cover the damage, as well as the repairs, are necessary to get it back to its original state. However, if you are renting it out, it is your responsibility as the landlord to get insurance coverage for it. Tenants of your home structure are not required by law to have the house covered by insurance.
Unlike car insurance, home insurance is not compulsory. It means purchasing it depends a lot on you. However, if you are the owner of the property, buying home insurance should be on top of your priorities list. To learn more about what you are buying for your home, here are some of the questions that you may have and the answers straight from insurance advisors:
What do I Need to Know About Home Insurance?
Home insurance is an umbrella term that refers to two types of insurance policies. First, it relates to the building insurance. This means that the insurance covers the actual structure of the home. The permanent fixtures, as well as fittings of the house like the bathroom and kitchen, are all covered by insurance. On the other hand, the same term also refers to the content insurance. This type includes everything you keep inside your homes like furniture, personal belongings including the type of flooring and the carpet too.
Can I Buy Both Insurance Coverage at the Same Time?
Though you may buy these two separately, most insurance advisors recommend that you buy both. A joint policy from the same insurance company can also spell out savings on your part. Usually, insurance companies offer special rates if you purchase more than one policy under them. If the company provides business and car insurance policies, then that might be an excellent way to save on costs too.
What do Building Insurance Cover?
Falling trees, vandalism, fire and water damages caused by leaking pipes are just some of the situations that most building insurance cover. Depending on the policy you got, additional external structures like outside walls, fences, and even your garage might be covered by insurance too. To be sure, ask the insurance provider for the specifics.
Do you need to buy building insurance? If you own a home or a building you rent out, it is best to make this purchase. After all, your mortgage application will usually add this as a condition. Moreover, it is the protection of your property that you should be after.