What does Buildings Insurance Cover

Most people know they need buildings insurance. Some are justifiably uncertain of a few points regarding the coverage. It is easy to get a little confused wondering what does buildings insurance cover exactly.  Because the buildings insurance and contents insurance often appear linked there is the misconception that the two are linked, or that if one has one type of insurance the other is covered as well. This is, in fact, untrue and it is important to do the research into exactly what type of insurance a dwelling needs to have the best coverage possible. 

What does buildings insurance cover and what falls under contents instead?  The easiest way to understand it is to think of the building, whether it is a business or family home, as a single unit.  Everything actually built into the original unit is covered.  This means the structure itself, the support beams, the sinks, toilet and light fixtures are covered.  This is in large part what building insurance covers, but this is not all.

As far as what does building insurance cover the truth is a bit beyond this limited definition while still staying to the principle of insuring what is attached to the building. For instance, the fence is protecting the building and cannot be removed from the site so it is covered.  The immediate property under the building is, likewise, covered. If there are sheds in the immediate area of the building and these are of the type which are not immediately removable and so they are insurable.

Where the confusion can come in is that contents and building insurance are often offered as a package. Contents insurance covers those things within the building that are not a permanent part of the dwelling.  This would be electronics, household furnishings, kitchen appliances and office equipment.  These things can be removed from the building and are not a true part of the building. They are merely usually kept inside the building.  While the house or office would not seem the same without desks, chairs or furniture, these things are not covered by the buildings insurance and such possessions will need to be covered by contents insurance instead.  Contents and building insurance can be bought separately or bundled together to save money. 

Other ways to save money with buildings insurance are to do the homework and shop around looking for the best price. The insurance company will look at the building, the neighbourhood and the risk the company sees of a claim being made. For example, if a building is in a high-crime area, the insurance will be higher, so it pays to look for the best rates available. It is also true that if the owner will pay a higher deductible the rates might be lower. Another cost cutter is to install security features and safety devices, which might make the building more attractive to insurance companies. 

Looking for buildings insurance online is a good idea as well because it is easier to compare different rates and polices.