What Is Buildings Insurance?
Building insurance protects your property from damage caused by events outside of your control. Most mortgage lenders will insist that you take out buildings insurance as part of your agreement so that they have peace of mind that they won't be left without security for their loan.
When you are looking for buildings insurance you should always think of the worst case scenario. In terms of cover, you will want enough to cover the cost of rebuilding your home in the event that it is totally destroyed or damage to the point where a complete rebuild is necessary. The cost of a rebuild is different to the market value of your property so calculating your level of cover can be tricky. Many insurance firms will offer rough guides to the level of cover needed for modern homes some even offer unlimited cover but this comes at a cost.
If you want to work out the value yourself then ensure you have taking into account every cost associated with rebuilding or repairing a house, this includes architect, surveyor and demolition fees - the last thing you want is to be under-insured.
If you own an old house or a property which doesn't follow conventional design then it is recommended that you instruct a chartered surveyor to carry out a Rebuilding Cost Assessment.
What Does Home Buildings Insurance Cover?
You should also check what exactly you are covered for. The majority of buildings insurance providers will pay out if your property is damaged by the following:
- Flood and storm damage
- Burst pipes or other water leakage incidents
- Smoke, explosions and fire
- Subsidence
- Third party damage
- Vandalism
If you want further protection then most insurers offer cover for eventualities not contained in the standard policy. One of the most popular additional extras is accidental damage cover.
Another thing to consider is whether you will want protection if your property becomes uninhabitable? Some comprehensive policies will include alternative accommodation cover which means that you will be rehomed free of charge until your property is habitable again.
Buildings insurance doesn't just cover structural damage, but can also cover permanent fixtures and fittings such as toilets, baths, fitted kitchens and interior decorations. Some policies will even include outbuildings such as garages, greenhouses and garden sheds.
DISCLAIMER: All content is for guidance only and does not constitute individual financial advice.
www.homeinsuranceinfo.co.uk is not authorised by the FSA to advise on insurance matters.
