Almost everything that you own, and would take with you
if you were to move is covered by Home contents insurance.
This
cover is of two types; buildings insurance and contents
insurance. The actual structure or fixtures and fittings
of your property are covered by Buildings insurance. The
Contents insurance takes care of contents of your home against
loss or damage. Both include protection against fire and
theft, as well as subsidence, flood and storm damage.
Tenants are only required to take contents insurance since
it is the responsibility of the landlord to maintain the
structural aspects of the building.
Various
factors determine the way in which an insurance premium
is arrived at and it can be different for every insurer.
Usually insurers check out where you live by from your postcode.
The postcode helps them to know about type of area you live
in. Armed with this information and their experience and
knowledge of that area they work out the premium. Unfortunately
insurers do not have any control over postcode allocation,
and cannot separate out low-claim properties from so called
'high-risk' housing if the two are grouped together into
the same postcode band. However, if you do some online hunting
you may get a company that might be using a different system.
Besides this many other factors are used to calculate a
premium such as the value of the item or items to be insured,
the level of insurance that is required, the details of any
claims that have previously been made etc.
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