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May 21, 2013 by thesugar | Filed under Insurance Advice.

Buildings And Contents Insurance: You Just Need to Prepare for the Unexpected

When you talk about protection, it is not only the individual that needs protection but something more. If you own property you may need buildings and contents insurance. Even if you structure is situated in a safe area, you will never know when disaster will strike. This in essence is the rationale of buildings and contents insurance. You insure your building from fire, earthquake, floods and other acts of God. At the same time you insure the contents inside the building. All contents that are movable can be covered by the contents insurance.

There is cover for your Structure

The most important portion in buildings and contents insurance is protection for your structure. You building is generating income, in the case of commercial and industrial buildings. Even residential structures can generate income if they are being rented out. You need to purchase insurance equivalent to the value of the building as approved by an insurance appraiser. If you structure is burned down due to an accident, or destroyed by an earthquake or washed by flood, the insurance provider is liable to pay you the face value of the insurance.

There is cover for your Contents

In some cases, the contents inside the building may have more value than the building itself. It is always advisable to insure the contents. In buildings and contents insurance, both the building and the contents are insured. If the building meets a disaster and all the content gets destroyed, you can file for a claim with the insurance provider. You will be paid the amount of cover for the building and for the contents. These are separate amounts, so it is good to have separate insurance coverage. Some policies are integrated but the amount of cover for the building and its content are presented individually and clearly separate.

There is cover for most Disasters

The most common protection for buildings and contents insurance is fire protection. This means that if your structure is destroyed by fire, the insurance provider pays you a certain amount. Lately however, natural disasters called acts of God have become commonplace in many parts of the world. You still need to have protection from fire hazards but then you need to add flood protection, earthquake protection and even lighting protection. If you can have protection for all types of acts of God, then so much the better. As many financial experts say, it is better to have excess insurance cover than to be under-insured.

When you need to prepare for the unexpected, there is no other type of insurance that can give you such a protection. While this type of insurance is simple, there are inclusion and exclusion clauses, that you need to read before signing your name of the policy. Make sure that your intended protection is there and the corresponding policy value is also there. Only then should you sign your name on the dotted line. Separate protection for your building and its contents are essential. There may be instances when the contents can never be placed in safety. You need to invest in contents and buildings insurance.

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