Contents Insurance versus Building Insurance

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by Fran Connors
(California, USA)

Contents Insurance V Building Insurance….when a landlord needs to buy insurance for their property which they are about to let to tenants, they will need to choose Building Insurance, instead of Contents Insurance, the latter of which is typically taken out by tenants before they are due to move into their new home. But what is the difference between these two types of insurance? And why should a tenant only choose Contents Insurance?.

Building Insurance – is purchased by a landlord because they are responsible for the upkeep of the house’s structure. Damage could happen to a property after natural disasters and this includes flooding, or fire damage because of a lightning strike. As a hefty repair bill might be needed for fixing the damage, it is a landlord’s responsibility for fixing these problems because what they own has become damaged. As several tenants might live in the same house over several years, determining which tenant is responsible for fixing any damage after a natural disaster would be impossible. Therefore, this is why the responsibility of resolving this type of damage is the landlord’s.

Contents Insurance – is paid for by tenants because this covers the possessions which they own. If any of their possessions are stolen or damaged beyond repair and this was done accidentally, cheap Contents Insurance will still be able to cover these situations. Such personal possessions which can be covered include furniture and hi-fis.

Possessions which are taken out of a property can also be covered too, such as bicycles. If a bicycle is damaged or stolen, the cost of repairing it is possible under Contents Insurance. As personal possessions are owned by the tenant, it is their responsibility to claim if these items are no longer usable or have been stolen. As aContents Insurance policy can also be taken out for six months, a tenant on a short-term contract can choose it.

Updated: November 8, 2012 — 3:26 am

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