Property Insurance Flashcards
What is property insurance?
Property insurance provides compensation to the policyholder in the event of damage to the structure or damage, loss or theft of the contents of their home
What three factors is a property insurance premium based on?
Value of the house/contents of the house
Location
Security level
What are the three types of property insurance?
Building insurance
Contents insurance
All risks insurance
What is building insurance?
An insurance policy that covers damage to anything that cannot be moved form the home including the structure e.g. roof and permanent fittings e.g. kitchen units and outerbuildings e.g. garden sheds
What damage does building insurance protect against?
Damage caused by burglary, vandalism, fire and certain natural disasters e.g. lightening and flooding
In relation to building insurance, what happens in the event of damage?
Compensation is paid out
Why is it important to check the fine print of building insurance policies?
As some policies have exemptions such as protection from flood damage is omitted from some policies
Other than protection from damage what does building insurance protect the homeowner from?
Homeowners’ liability for injury or loss suffered by another person on their property as a result of an accident is included in most policies
What is building insurance a legal requirement of?
A mortgage
What is contents insurance?
It is an insurance policy that covers all moveable items kept in the home, including personal items, domestic appliances and furniture against risks like damage, loss or theft
When is compensation paid out in relation to contents insurance?
In the event of damage, loss or theft
Why is it important to check the fine print of contents insurance?
As there may be exemptions such as the protection of antiques may be excluded
What type of insurance is contents insurance often taken out with?
It is often taken out as an optional extra policy with building insurance or combined in a single home insurance policy
What type of items are not included in contents insurance?
Expensive items such as an engagement ring
What is all risks insurance?
An insurance policy that covers damage to personal valuables, including paintings, computers, tablets and jewellery, against risk like damage, loss or and theft both inside and outside the home
