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When Brits buy homes there are two basic components to standard home owners insurance. There is buildings home insurance, which covers the replacement cost of the physical building or property. The second coverage item is for contents or personal items maintained inside the property. Along with these standard covers, there is also usually legal protection or liability protection to guard against lawsuits for people injured in the home.

Buildings home insurance is usually the biggest piece of the home insurance protection. Many home insurance customers make the mistake of looking for the lowest premium price and assuming that is the best plan for them. It is important for home buyers to be very careful in examining the various features of home insurance products to ensure the best value.

Some home insurance agents believe they are helping the home buyer when the find low cost options. In fact, some agents even manipulate numbers in the insurance quote and plan in order to create the lowest cost. Buildings home insurance is a common tool used to keep premium costs low. The building insurance is also known as the replacement cost for the home or property. Some home owners think the replacement cost should be the same as the cost to purchase the property. This is not usually the case.

An accurate replacement cost is an estimate to replace the property if it were destroyed by a tornado, fire, or other covered event. For older properties, the replacement cost can be significantly more than the market value of the home. This is because the cost to replace the building must be based on the current cost of materials and labor required. If a property buyer gets a good deal on a home because it is worn or needs some repair, the replacement cost, which incorporates new materials, should be higher than the purchase price.

In spite of the sound reasoning for having the right amount of replacement coverage, many home buyers and their agents manipulate insurance items, such as buildings coverage, lower in order to reduce premiums. It is definitely true that doing this can reduce monthly insurance premiums, but it defeats the purpose of insurance. Affordable insurance is important, but so is having insurance that provides needed financial support when it is used is more important.

Brokers or specialists in providing home insurance understand the importance of thorough coverage and will encourage buyers to be practical as well as economical. Another often overlooked aspect of home insurance is building cover for external buildings or those outside the main property.

Full buildings home insurance cover should take into account all physical buildings associated with the property being covered. Some properties have external buildings such as guest houses, greenhouses, sheds, detached garages, or others. In the event of a damaging or destructive event, it is important that coverage is adequate to include the replacement costs for all of the property's buildings, not just the main property. Customers need to be sure to tell their broker they want thorough buildings coverage.