At futurseguros, as an insurance agency in the Balearic Islands, we believe that it is important that both our customers and non-customers understand and can correctly assess their insurance, so we make this blog where we explain in a basic and quick way the most common concepts in insurance policies. However if you have any questions or want a personalized quote for your insurance you can contact us here.
Buildings and Content What are they and how to calculate them?
What is the Building?
The building refers to the physical structure of our home, which includes walls, ceiling, roof and floors. It also incorporates basic building elements such as pipes, wiring, sockets and plaster moulds. All these elements are attached to the building and are not easily separable. To understand it better, if we were to turn the house upside down, everything that is part of the continent would not fall down.
What is content?
On the other hand, contents are everything inside the dwelling that is not necessary for the structure of the dwelling. This includes the inhabitants’ own property, household appliances, furniture, jewellery, crockery, etc. In other words, if we were to turn the house upside down, the contents would fall out under their own weight, with a few exceptions (toilet, shower crockery, etc.).
How to calculate the building and contents to be insured?
Basically, both building and contents would be calculated by multiplying the number of metres by the cost of insurance. This cost depends on factors such as the quality of the property, the age of the property or the use of the property in the case of the contents, and is normally calculated by a computer programme based on the data from the land registry (meters, age, etc.).
The cost of a one-square-metre villa in Port de Andratx is not the same as that of a one-square-metre flat in the centre of Manacor, although they are two towns in Mallorca, so the type of property is also important.
Where do we find building and contents in insurance?
We can find building and contents in commercial insurance, insurance for companies such as industrial buildings and similar, in community insurance and, of course, in home insurance.
Tips for choosing building and content insurance.
Although both are generally calculated automatically by most companies, it is advisable to bear in mind several points and to be clear about when it may not be necessary to contract it.
- If we are renting, we can avoid insuring the building, as the property belongs to the landlord.
- The content depends largely on the use we make of our home, is it insurance for our habitual residence, for a second home, a holiday home… as the content will be much less in a home that is not our habitual residence.
- If the property is refurbished or extended, it is essential to adjust the value of the building and contents, especially in community insurance if there is a refurbishment, this must be indicated.
- Take into account accessory elements in home insurance, or the absence of them, such as swimming pools, storage rooms, garages, etc.
- If you own jewellery or special items, it is advisable to include them in the content, although most already include an amount for this.
- My advice, consult an insurance broker for guidance, any insurance agency will be happy to advise you, regardless of whether you end up as their client or not.