Whilst Buildings and Contents sound obviously different, there are some areas where the boundaries are blurred.
When obtaining insurance quotes for you buildings and contents, it is important to ensure that these figures are correct, as if there is claim (such as fire) and insurers discover that you have under-insured yourselves, they will apply averaging when paying out your claim. This means that they will only pay the proportion of the claim that matches the proportion of what you were covered for.
For example, if you have declared that your property rebuild value is £100,000 and it turns out to be £200,000 – then insurers have the right to only pay out 50% of the claim – in their eyes, you’ve only been paying 50% of the premium that you should have been.
In light of this, it is important to get the correct rebuild figure – this is not the market value of your home but the cost to rebuild the property from scratch. This is best obtained by having a valuation or survey done at the property. If you have recently done a substantial amount of work then we recommend getting this done again once works are complete so that you can be sure of the correct value of your property. Insurers will need this figure in order to quote.
Moving onto the general contents – the best way to think about this is to imagine tipping your house upside down – everything that falls out comes under the contents! Anything that is fitted (such as cupboards, carpets and even kitchens) often comes under the buildings aspect (best to check this with each insurer though). We also recommend going through each room in your house – contents include sofas through to beds, cutlery and even your clothes. Any art, antiques and valuables (jewellery and watches) need to be separated out from the general contents, with items with an individual value over £5,000 (for valuables) being separated out and declared as specified items. Insurers will most likely need to see valuations that have been done in the past 3 years for such items.