Types of Prudential Home Insurance

Generally, insurance companies like to split protection for your home into two parts - buildings insurance and contents insurance. This provides you with the flexibility to take out the cover you actually need. For instance, you wouldn't want to take out buildings insurance if you were renting a flat.

Buildings insurance

To determine if you need this type of cover, you'll need to work out if you'll be financially impacted if something were to happen to the bricks and mortar of the place you are living or rent out. In most instances, this will be if you are the home owner, and won't apply if you live in a rented property.

Things to remember:

Ensure your property is covered for the possible rebuild costs and not the market value. This is a common misconception when getting quotes for buildings insurance. (It can often prove less costly to rebuild your house from scratch than to buy another, as the land it sits on will usually remain unscathed.) Also, the same type of house in a slightly different area can have a lower market value than another but yet cost the same to rebuild.

To evaluate rebuilding costs you can consult the Chartered Institute of Surveyors website, which will help calculate all major factors.

Your mortgage provider may insist that buildings insurance is in place on your property to ensure they are not left without security for their loan.

Some policies only cover market value, so be sure to check your policy covers rebuilding your home if it's totally destroyed or damaged beyond repair through:

• Storm and flood damage.
• Burst pipes and other incidents of water leakage.
• Fire, smoke and explosions.
• Subsidence.
• Vandalism or third party damage.

The policy could also provide alternative accommodation if your home is uninhabitable. Be careful not to opt for the cheapest building insurance quote available and think about your needs. We realise the importance of price when making your decision but must stress the importance of adequate coverage.

Contents insurance

Contents insurance provides protection for the items within your home that do not form part of the structure of the buildings, such as appliances, electronic goods, furniture, clothing and even the contents of your freezer. These are often your day-to-day items, and you'll need to determine if you'd be at a financial loss should they be damaged, lost or stolen. This applies to homeowners, landlords and tenants alike.

Contents insurance covers the loss and damage to your personal belongings caused by:

• Fire, smoke damage, explosion or natural events such as earthquakes and lightning.
• Theft or attempted theft.
• Riot, civil commotion or strikes.
• Storm or flood.
• Subsidence, heave or landslides.
• Spillage of water or oil from a fixed water or heating fixture.

The types of contents included under your policy as standard include:

• MP3 players.
• Televisions.
• Video recorders, DVD players.
• Audio equipment.
• Computers and laptops.
• Games consoles.

Things to remember:

Your home contents insurance could also include items taken outside the home such as bicycles or prams and even the contents of your handbag. Clothing, watches and mobile phones can also be covered along with sports equipment. The key is to check your policy and never assume that items are covered.

As with all insurance, it pays to check your policy documents carefully when you receive them to ensure that you are adequately covered. Ensure the financial limitation imposed by insurers meets your needs for items such as jewellery and electrical equipment. Art or collections may need what's known as 'specified items cover'.

You might also like to consider accidental damage cover, if it's not part of your policy. This covers against DIY accidents, paint spillages and so forth, and is available in both building and contents insurance.

Buildings and contents insurance

As a homeowner or landlord you may find yourself needing both building and contents insurance. By taking these policies out together and from the same provider, there could be discounts available to you.