Buildings and contents insurance is a comprehensive insurance policy with a wide range of coverage for both the structure and the contents within. The policy also offers financial protection from indemnity arising out of third-party liability claims.
Buildings and Contents Insurance Coverage
Building insurance covers:
- Loss or damage to the building due to fire, storms, falling trees, theft, malicious activities and vandalism
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Loss or damage due to subsidence or landslip
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Leakage of liquids, such as water or oils
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Accidental breakage of sanitary wares or glass fittings
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Damage to the cables or underground pipes used to serve the building
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Cost of alternative accommodation in case major repair is required due to an insured event, such as fire.
Contents insurance covers:
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High risk belongings, such as computers, laptops, cameras and other artifacts
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Business equipments in the building, such as fax machines, printers and official instruments
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Credit card loss in case of an insured event
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Trees or plants in the garden or building lawn
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Contents in the parking area or outbuilding
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Personal cash money in the home
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Replacement of safety locks, in case the keys are stolen
Buildings and Contents Insurance: How Premium is Determined
Insurance companies consider the following factors to determine the policy premium for buildings and contents insurance:
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Amount of cover: The more an individual is insured for, the higher will be the premium. Also, the list of contents insured under the policy will affect the premium. With more expensive items on the list, the policy premium could skyrocket.
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Personal details: An individual's personal, professional and financial details also determine the premium. First time buildings and contents insurance buyers will be charged higher. Insurance companies also review an individual's insurance history for claims filed over the past several years.
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Locality: If the building is in a safe neighborhood with security guards, fire extinguishers and other safety devices, the premium is usually lower.
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Safety fittings: With high-quality locks and electronic surveillance systems installed, one can expect to pay lower premiums.
Buildings and contents insurance has several exceptions. The most prominent exceptions include damage caused by earthquake, floods or poor maintenance of the building.