If you have recently bought a new house, then there is no doubt that you have been advised by multiple people to get it insured.
There is a reason why people are persistently advising you to insure your home.
The reason is simple.
It is the fact that your home is possibly the second most, if the not the most, important asset of your life till now.
Furthermore, you have probably been dreaming of owning your own house since you began working.
Now that you have achieved that goal, it is only logical to assume that you will want to protect your house from all types of threats, whether natural or man-made.
The best way to do this is through insuring your house.
However, when you initiate the process of insuring your house, you will find yourself facing the dilemma of what type of a policy to go for.
There are primarily four different types of home policies that you can choose from.
The following are their descriptions.
1.
Buildings policy: These are home policies that do not give you the option of insuring your belongings and contents of the house.
This type of home policy only provides cover for the structure of the house and not the items inside.
However, a buildings home policy will contain additional clauses that will allow you compensations for things like temporary accommodation and damage to windows, solar panels and bathroom fixtures.
2.
Contents policy: Contents policies are the exact opposite of the buildings policy as they only provide coverage for the contents inside the house and exclude the structure of the house from the purview of the cover.
It has been suggested by many experts that these types of policies are ideal for people who are renting houses.
However, they will also suit people who own a house but are financially constrained.
3.
Buildings and contents policy: This policy is an amalgamation of both the buildings only and the contents only policies as it contains coverage for both the aspects of the house.
This means that these types of policies are extremely comprehensive in nature and, usually, take into account all contingencies.
As a result of their ability to provide everything with cover, they are also more expensive than either one of the policies mentioned earlier.
4.
Specialist home policy: Even though the previous three types of policies are designed to include the majority of houses in the country under its purview, there are still houses that will not fall under their coverage.
These are houses that are different from the average house in the country.
The difference can be due to any variable including equipment, architectural design, residential conditions, location etc.
For houses that are straddled with very specific and rare situations such as flood prone area, extremely large houses, flat roof etc.
, there need to be special home insurance policies.
These policies are known as specialist home insurance policies and are designed specifically with the needs of that particular house.