Everyone who intends to have homeowners insurance must make himself aware of the differences between Home Insurance and Contents Insurance.
Home Insurance is also called building insurance or house insurance. Home insurance covers the building and everything related to the structure of the house. This includes the walls, roofs or ceiling etc. It also covers any adjacent or adjoining structures like porch or portico, garages, outbuilding, gate, and gatepost etc. Outbuilding like sheds and garages come under home Insurance. Any attached structures or fixtures are also included in home insurance.
All these are insured for total loss or damage caused by hazards such as fire, theft, flood, windstorms, earthquake or any other perils that are named. Home insurance is mandatory in case the house is purchased through loan or mortgage.
Contents Insurance covers the contents of the house. Here contents mean any household item kept for the domestic purpose. These can be items such as furniture, electrical appliances, electronic items, furnishing and clothing or any other domestic equipment like a washing machine, dishwasher or refrigerator etc. It also includes personal item inside the house that belongs to you or any member of the household residing in the house.
The items that are listed for coverage are covered against loss or damage due to any of the hazards that these are insured against. These include burglary or theft, fire, storm, flood or earthquake.