Buildings insurance covers the structure and materials of your home - not what's inside it. This comprises permanent fixtures and fittings such as kitchen units and outbuildings.
In conjunction with contents insurance, you can protect both the contents and the actual structure of your home be subject to fire, floods or any other damage of your home's structure.
Always remember to be honest when applying for buildings insurance as you could invalidate any claims if you haven't disclosed all of the facts.
Do I need buildings insurance?
Unlike contents cover, building insurance cover is compulsory if you have a mortgage. In the event of a mishap this cover will pay out for repairs and rebuild of the property. If you are renting a property then your landlord should have buildings insurance.
If you have a mortgage, buildings insurance and life insurance are mandatory. Buildings insurance usually insures you against:
- Fire, smoke and explosions
- Flood damage and damage from thunderstorms
- Burst pipes and other incidents of water leakage
- Subsidence, heave or landslip
- Vandalism or third party damage
- Falling trees or branches
- Theft or attempted theft
What should I be looking for in a buildings insurance policy?
When taking out a building insurance policy make sure the ‘sum insured’ is enough to cover the cost of rebuilding the entire house if it were knocked down. Some experts believe that we are over insuring our homes.
This is because most people make the mistake of basing their quote on the market value of the property (the sum it can be sold for), which could include a high premium for the location rather than the rebuild value of the house, which only takes into account the cost of materials and labour and does not factor the location.
How do I find the cheapest buildings insurance premium?
Building insurance premiums can be kept to a minimum by ensuring you shop around for the best quotes. You can also save money by combining building and contents insurance together and paying for the insurance in one lump sum rather than monthly payments.