Lawfuel.c0m – If you own a home, you probably have standard buildings and contents cover, especially if you have a mortgage. Almost all lenders require the borrower to obtain at least buildings insurance before they will make the loan. While most standard buildings and contents insurance policies provide adequate coverage, every policy has its nuances.
A quick review of the fine print will often reveal that some areas of cover the homeowner expected to be in their policy are not included, or the coverage amounts are much lower than desired. In those cases, the homeowner may want to purchase an addition to their buildings and contents insurance to ensure their home and property are fully covered. Accidental damage to the owner’s home and property is one area where homeowners often find their standard buildings and contents insurance is lacking.
Many insurance companies offer a combined buildings and contents insurance policy. Although separate policies for buildings cover and contents cover can be purchased, homeowners normally find the premiums are cheaper when the two types of cover are combined into a single policy. Because homeowners usually buy a single policy covering the building and the contents, a lot of consumers confuse the two types. They are not the same, and it is important to understand the differences.
A homeowner’s buildings insurance covers the permanent structure of the building and any items permanently attached to the building such as heating systems, built-in ovens, water heaters, decks, and outside steps. If any of the home’s structure is damaged or destroyed by one of the covered damage types, the insurance company will pay to have that part of the home’s structure repaired or replaced up to the maximum limit of the policy. The amount paid by the insurance company will depend on the type or level of buildings cover the owner purchased as well as the amount of excess selected by the policyholder.
A homeowner’s contents insurance will cover the resident’s property in the home. This includes unattached appliances, electronic equipment, furniture, clothing, and other personal items. The home’s contents are normally covered under the same damage circumstances as the buildings cover. Under certain circumstances, some insurance companies will even cover personal property when it is taken outside the home.
Does Buildings and Contents Insurance Cover Accidental Damage?
Standard buildings and contents insurance basically covers damage outside the control of the homeowner such as fire, storms, theft, and possibly land slippage. In theory, it does not cover accidental damage to the building or contents done by the residents of the home. However, many insurance companies will automatically include some type of accidental damage to their standard buildings and contents cover. Before you purchase any insurance, you should read the fine print and thoroughly question the insurance representative to discover if you will be covered for accidental damage. Even if you are covered, you may find the amounts are inadequate or the exceptions to coverage are unacceptable. If protecting your property from accidental damage is important to you, then you should consider purchasing accidental damage cover as an additional option to your standard buildings and contents insurance.
What Does Accidental Damage Insurance Cover?
Purchasing an accidental damage insurance addition to your standard policy should cover you against damage done by the residents of the home through accidents. Damage done by children such as knocking over a television should be covered. Additionally, if a small child spills a drink on an expensive piece of electronic equipment, it should be covered. Even a do-it-yourself project gone wrong should be covered if the resident damages the building or its contents. The type of damage covered varies between insurance companies, so you should read the fine print closely for exclusions. Also, many accidental damage policies will have a per item maximum, so if you have a very expensive piece of antique furniture or electronic equipment, you may want to consider a special addition to your insurance policy just for that item.
Accident damage cover will supplement the coverage provided by your standard buildings and contents insurance. Even if your current insurance covers some accidental damage, you should consider the amount of coverage and whether you might need additional accidental damage protection over and above your current amount. Not everyone needs additional accidental damage cover, but if you have expensive items in your home, you may want to consider obtaining additional protection for your own peace of mind.
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