Building and home insurance are similar, with a few exceptions. Generally, companies say that building insurance covers “structure and fixtures.” Home insurance, on the other hand, can cover either or both “structure and contents.”
A lot goes into both of these types of insurance, and even more things to consider when purchasing a policy. What do you need to know about them, and how can you be sure you’re making the right choice?
Home Insurance…
Home insurance covers damages related to theft, natural causes, and general accidents. This is the case, however, for both home and building insurance, and shouldn’t come as too much of a surprise.
Related to these incidents, home insurance will cover 4 things:
- Liabilities: If someone is injured in your home, your home insurance will cover the involved medical and legal fees.
- Additional Living Expenses: If an insured disaster occurs and displaces you from your home, your insurance will cover the costs for temporary living arrangements while your home is repaired.
- The Structure of Your Home: This is anything related to your home’s exterior, and possibly other separate buildings on your property. It will cover repairs and rebuilds for natural disasters listed on your policy, excluding flood, earthquake, or routine wear and tear.
- Personal Belongings: Any of your personal belongings (furniture, clothes, etc.) that are stolen or lost to insured disasters will be covered. More expensive items, such as credit cards and jewelry, will likely have a set claim limit.
…vs. Building Insurance
A lot of loaners will require building insurance to be approved for a mortgage. Like home insurance, building insurance will cover damages related to accidents and disasters, but not theft. Why is that?
Well, building insurance two main things:
- The Structure of Your Home: This coverage is essentially identical to the structure coverage offered by home insurance.
- Permanent Fixtures and Fittings: Unlike home insurance, building insurance covers things like your home’s walls, ceilings, floors, doors and windows, fitted kitchens, bathroom suites, etc.
Obviously, these fixtures would be incredibly difficult to steal—this is the main difference between home and building insurance. Home insurance offers the option to comprehensively cover the home’s structure and your belongings while building insurance covers the structure as well as specific fixtures in case of damages.
Get the Most Out of Your Insurance Policy—Call Redwood Agency Group
Whether you are looking to change your insurance policy or are searching for a new one for the first time, we are here to help. We simplify the buying process to make it as understandable as possible, making sure to get it done right (the first time).
Get advice from agents you can trust. Call Redwood Agency Group today at (512) 994-0894.
