Building and Contents Insurance
Some people believe that when they arranged the mortgage and bought their building and contents insurance from the building society that they are bound to stay with them. This is not the case as you are not bound to buy your building or contents insurance from your home lender, unless of course you agreed to a special mortgage deal which compelled you to buy their insurance. Mortgage lenders tend to have an arrangement with an insurer who will provide at least buildings insurance to borrowers. It is convenient for the lender because having set up an arrangement, they know clearly what the cover includes. However, it may not be the best deal for you in price terms and you might choose to shop around. If you decide to use another insurer, your home lender will have to give its approval. They'll want to check through the policy details and for this service they may charge you a fee.

Why do we Have Building and Contents Insurance
So why do you need building and contents insurance? Do you need them? The answer to this is that it is wise to have both but it is not strictly compulsory to have either. When you take out a mortgage the lender will more than likely insist that you have buildings insurance (if they don't then consider going elsewhere). The reason for this is that if the house collapsed into a mineshaft the lender would need to know that the borrower had adequate means of covering such a catastrophe. Standard contents cover insures your possessions in the home like furniture, clothes and ornaments. Policies often include extra cover on top, like garden equipment, frozen food and money. If you have something particularly valuable, you should specify it separately - as a specified item. You can cover your possessions while away from home under the all risks section of a policy. Usually for a specified amount e.g. £5,000, or the total value of items away from home at any one time. You might do this for musical instruments, sports equipment, skis, bicycles etc. Check the policy to see if they're covered outside the UK too. If so, you can save money on travel insurance, because you don't need to include personal possessions cover.