Buildings and contents insurance are both types of home insurance. Buildings insurance covers you against financial losses if the structure or permanent fixtures of your house are damaged, and contents insurance is for your belongings that would go with you if you moved. There are many different levels of cover, so here are some things to be aware of when choosing a policy.

It is essential that your building insurance policy gives you cover for the full cost of rebuilding your property and not just the market value. This will protect you from fluctuations in the property market and will sometimes reduce the premium. The land your home is built on is unlikely to be damaged even if your house is destroyed by fire or flood. Rebuilding a house on the existing plot is often less expensive than buying another. Remember that similar houses may be worth different amounts even if they are only a few streets apart, but the cost of rebuilding will be the same.

Your contents insurance must give enough cover to replace your belongings, so be careful not to under insure. This means that the maximum your insurer will pay is not enough to cover your losses. Your premium will increase with the amount of cover, but it would be a false economy to under insure because if you were unlucky enough to make a claim you would lose out financially.

To get a realistic idea of how much cover you need, make a list of your possessions, and dont forget to homemade items and gifts. Work out the approximate value of each, and think how much they would cost to buy new. It is worth considering paying extra for a new for old policies so that you get the cost of new replacement items, otherwise you will only get the value of your old used one which could be a lot less.

You may decide to opt for cover for the things that you take out and about with you. Mobile phones, laptops and jewellery can be covered by your house insurance even if they are lost or damaged away from the home. Also think about the contents of your garden, greenhouse and shed, are your tools and garden furniture covered?

Not all building insurance offers the same level of cover. Along with your house, check whether your buildings insurance covers you against damage to greenhouses, sheds and garages as these items can be costly to replace.

If you build an extension, convert your loft or make any other big changes to your home make sure that you tell your inSurance company and update your policy. If not you could lose out if the improved aspects of your home need to be repaired or rebuilt.

Look out for discounts if you buy your contents and buildings insurance from the same provider. Do shop around and remember that the cheapest cover may not be the best value, and for a slight increase in premium you may be very grateful for the additional cover should you be unlucky enough to need it.

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