Learn about Material Damage (Buildings and Contents) Insurance with Tennyson the charity insurance experts
If your organisation has any property, a Material Damage policy will protect you from the cost of replacing or repairing it, if it is damaged. This applies to the fabric of the premises (Buildings Cover) as well as the contents (Contents Cover).
Example
During a cold snap a pipe bursts on Friday night. By Monday, when you come to work the office is flooded with six inches of water. The damage to your equipment and to the office will cost several thousand pounds to repair. A Buildings Cover policy will allow you to repair the soaked floor and plaster walls and the Contents Cover policy will allow you to replace damaged furniture and equipment.
Who needs Buildings Cover?
If you own, rent or in some cases even borrow premises, Buildings Cover will protect you from the cost of repairing damage.
Who needs Contents Cover?
If you have contents which you cannot afford to replace were they damaged or stolen, then Contents Cover will protect you.
What risks does Material Damage typically cover?
A typical Material Damage policy covers you for damage to your property caused by:
- Fire, lightening & explosion
- Storm, flood, earthquake
- Escape & leakage
- Theft, social unrest
- Impact from aircraft, vehicles and falling trees
Most policies also cover the temporary removal of some contents when removed from the office for a short period of time.
What does it not cover?
Generally Material Damage will not cover losses due to the presence of asbestos, faulty workmanship, negligent maintenance, corrosion or erosion. Contents Cover will not cover items that are regularly removed from the premises, for this you need All Risks Contents Cover.
How much cover do I get?
The limit of indemnity for Buildings Cover needs to be specified by you and should be the current cost of re-building the property (not the re-sale value). For Contents Cover you should establish the replacement cost of each item which is to be covered; this value is then specified as the limit of cover.