Buildings and Contents Insurance: What Every Homeowner Needs to Know
Buying a home is one of the biggest financial commitments most people will ever make. Protecting that investment, along with everything inside it, is just as important as getting the right mortgage in place. At Akers Pritchett, buildings and contents insurance is one of the protection services we can help you arrange, alongside the rest of your mortgage and protection needs.
What Is Buildings Insurance?
Buildings insurance covers the structure of your home, including the walls, roof, floors, and permanent fixtures such as fitted kitchens and bathroom suites, against damage from events such as fire, flooding, subsidence, and storm damage. If your property were to be seriously damaged or destroyed, buildings insurance provides the financial means to repair or rebuild it.
Most mortgage lenders require buildings insurance to be in place as a condition of the mortgage, and many specify that cover must be arranged from the date you exchange contracts, not just on completion. This is something our team will flag well in advance so you are never left exposed.
What Is Contents Insurance?
Contents insurance covers your personal belongings and household items within the property, from furniture and appliances to clothing and electronics. If your belongings were to be damaged, destroyed, or stolen, a contents policy can cover the cost of repair or replacement.
Unlike buildings insurance, contents insurance is not a requirement of your mortgage. However, given the value of what most households contain, it is well worth considering. The two policies are often purchased together, and combined policies can offer a convenient and cost-effective way to ensure both are in place.
When Should You Review Your Cover?
Taking out a mortgage, whether as a first-time buyer, a home mover, or when remortgaging, is the natural moment to put buildings and contents insurance in place or review what you already have. If your property has changed in value, or you have made significant improvements, your existing buildings cover may no longer reflect the full rebuild cost. Similarly, if the value of your contents has grown over the years, it is worth checking that your policy keeps pace.
Our protection advisors will review your circumstances alongside your mortgage to make sure nothing is left uncovered.
How Akers Pritchett Can Help
Our team can compare buildings and contents insurance from a range of providers to find cover that suits your property, your belongings, and your budget. We will explain the key terms clearly, help you understand what is and is not included, and take care of the paperwork so you can focus on settling into your new home.
Get in touch today to discuss your insurance needs alongside your mortgage advice. We serve homeowners across Nottingham, Derby, and Leicester.
Frequently Asked Questions
Is buildings insurance a legal requirement?
Buildings insurance is not required by law, but the vast majority of mortgage lenders make it a condition of the mortgage. This means that in practice, if you have a mortgage, you will need buildings insurance in place. Lenders typically require cover to start from the date of exchange of contracts. Our team will ensure you have the right cover arranged in good time before that date.
Do I need separate buildings and contents policies, or can I combine them?
You can arrange them separately or as a combined policy. Combined buildings and contents insurance can be a practical and straightforward option, though it is always worth comparing both approaches to make sure you are getting appropriate cover at a fair price. Our advisors will look at the options available and recommend the most suitable arrangement for your circumstances.
What happens to my buildings insurance when I remortgage?
When you remortgage, your lender will require buildings insurance to remain in place. It is a good opportunity to review whether your current policy still reflects the rebuild value of your property and whether better value cover is available elsewhere. Our team can carry out this review as part of your overall remortgage advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
As with all insurance policies, conditions and exclusions will apply.