Insurance is required to cover your items of value in the event of an incident. Its important for people living in council house to understand what type of insurance they need.
There are two main types of insurance: Building and Contents Insurance
Content insurance is required to cover contents inside a house. This is to cover moveable items such as your appliances, electrical goods, carpets, furniture and any valuables. In the event of damage or loss, possessions they will be covered under the contents insurance. The insurance company will then payout a figure to cover your loss if you have a policy.
The two varieties of home contents insurance are ‘Indemnity’ and ‘new for old’ cover. The cheapest contents insurance is Indemnity cover. In the event of a claim this type of insurance will calculate the value of the items in their current state. The insurance company will take age and condition of the items into account before they payout.
The most expensive home contents insurance is the new for old type. If you claim successfully under this contents insurance the payout will be enough to buy brand new replacements. This will likely be a considerably bigger payout that the indemnity cover. It will enable you to go out and buy brand new replacements to cover your loss.
Home contents only covers possessions inside of your house. To cover the house structure building Insurance is needed. A council house tenant will not need to be involved in this. The council or housing association will arrange buildings insurance. If an incident occurred resulting in damage to the fabric of a house the council would make any repairs via their own insurance. Exceptions might occur if the damage was caused by negligence from the tenants actions. The landlord may seek to get compensation from the tenant to cover repairs if proof of negligence existed.
Housing associations and council house need not be concerned with buildings cover. If they want to insure their possessions then a new for old policy is probably the best option. It might be more expensive but you will then have a cover that is worth having that will enable you to buy decent replacements to cover your losses.
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