Household insurance: what is it and who needs it?

Household and contents insurance are insurances that every homeowner, tenant and business need, but what is the difference between them and do we all need both of these?

The definition of household insurance is very simple: this insurance covers everything that is a permanent feature in your home, so fitted wardrobes, baths, walls, even garden walls and ponds can be covered by this insurance. If you were to move house, anything you were to leave behind would come under home insurance. Contents insurance on the other hand covers all your personal items, which include everything from your TV to lamps, sofas, beds and even DVDs. In terms of the moving home analogy contents insurance covers everything you would take with you and some insurance companies would even cover it while you moved or are out and about with it.

When it comes to the question of what type of insurance you should have, it is again pretty straight forward. If you own your home you would need to take out both contents and household insurance, this is because you want to protect your personal belongings within your home and you also need to protect the bricks and mortar which surround them against anything that could happen to them.

If you are a tenant you would only need to take out contents insurance. This is because the bricks and mortar of the house are not your responsibility, you only need to protect your personal possessions and it is down to your landlord to take out the household insurance to cover the house.

Businesses that own their own premises would need to take out both content and household insurance, just like a homeowner. Those who rent their offices have a similar status to a tenant and would only need contents insurance rather than household insurance as well. Businesses should also look in to public liability insurance which covers them should anyone become injured on their premises.