Protecting property is an important consideration-after all most people have the majority of their wealth tied up in bricks and mortar or in general belongings, as opposed to large piles of cash.
This is why buildings and contents insurance is seen as so important by those who own and rent homes across Britain.
After all, a fire or break in could rob somebody permanently of thousands of pounds or hundreds of thousands of pounds if they don't have the right cover in place.
However, this does not mean that somebody should stumble blindly into the first policy which comes their way as the market is competitive and quotes can vary wildly.
One thing which is always worth pointing out is that not everyone will need both buildings and contents insurance protection.
Typically,people who do not own the property that they are living in, i.
e.
people who rent a house or flat, will not need buildings insurance.
This is because the actual property will belong to the landlord or whoever else owns the building and it will usually be their responsibility to get this kind of cover in place.
However, people who live in rented property will typically need contents insurance, as their own belongings are their own responsibility.
Likewise not everybody who owns property will need contents insurance.
For example, somebody who is renting an empty house or flat and has no plans to keep their own possessions in it may only want buildings insurance.
Some people will want to rent out property with things like 'white goods' and other belongings, so they may want a limited level of contents insurance on top of their buildings policy.
A buildings cover deal will normally pay out if the property is damaged by fire, flood, theft and vandalism.
These are the basic staples but it is worth checking for the likes of accidental damage protection for things inside the house, i.
e.
What is the provision for broken windows? How about the driveway? Is this protected against damage? Buildings insurance is also normally tailored to protect what are known as fixtures and fittings, normally referring to anything that you would not take with you if you are moving house.
On the other hand contents insurance will protect all the typical bits and bobs that someone keeps in their home.
This refers to expensive jewellery, furniture, electrical goods all the way down to kitchen utensils and books.
The normal process is to simply assess how much everything in the house is worth to determine a policy limit.
Once more, everything should be protected against fire, flood, and theft but an important addition is the potential for accidental damage cover, meaning somebody could get a payout if they knocked over a vase of water and wrecked a television, for example.
Once someone truly understands what they are after, getting buildings and contents insurance becomes more straightforward.
Almost all insurance companies will offer variations of the above - but for different prices and with different additions.
Negotiating these differences is the key to getting an effective and affordable policy.