While we commonly refer to building and contents insurance as one thing, it is in fact 2 very distinct types of insurance. Not only does it cover different aspects of your home and your assets, but the costs are significantly different. Because the 2 are closely related and there are certain gray zones that overlap, many people prefer to get it as an all inclusive package. Although there are benefits in doing so, there is an argument for getting it individually or not even getting content insurance as all.
Building insurance is probably the most critical. In fact, its more important than insuring your car because this actually insures the physical building and structure of your home. It also insures the land on which your building stands which becomes very important when natural disasters strike. Buildings insurance basically covers everything that is fixed on your property. When here are any structural issues with your property the repairs can be extremely high and more than that it can seriously affect the value of your home. Many mortgages require that you have buildings insurance.
Contents insurance basically covers everything in your home that is not fixed. There are a lot of different policies that includes and excludes a lot of different things and in many ways you can mix and match what you want cover for. Contents insurance covers you against burglaries, flooding, fire and a host of threats. Although this is not a requirement as with building insurance, it can help protect some of your most valuable assets. Jewelry, furniture, paintings, electronic equipment, collectibles … all these things can add up and be very valuable which makes insuring it important.
Contents insurance is often seen as a luxury these days and most people opt just for basic buildings insurance and risk their belongings. It's well worth looking into combining the 2 with a single insurer and at least try and insure the most valuable items inside your home. Only those who have suffered loss without adequate insurance knows just how devastating it can be.
Do not let it happen to you. Insurance can do more for you than cover you against loss. It gives you peace of mind and it gives you a sense of security that protects you and your family's future. Suffering a big loss in a fire or even in some natural disaster can ruin you financially. Insurance is there to protect your future.