Buildings Insurance Overview
Your home is probably the biggest and most expensive purchase you’ll make so it’s vital that your investment is fully protected.
Home buildings insurance is designed to cover the full cost of rebuilding or repairing your property in the event of fire, storm damage, lightning strike, earthquake, damage caused by burst or frozen pipes, vandalism or explosion. You could also make sure that your policy provides alternative accommodation if your home is no longer fit to live in, liability cover if damage to your property affects a neighbouring property, and help and support with access to approved tradesmen.
If your property is mortgaged, most lenders insist that adequate cover is in place. Insuring with your mortgage provider is not always the cheapest option so it’s well worth shopping around for the best deal.
What’s covered?
Buildings insurance will typically cover you for any damage or destruction to your property, including the walls, roof, windows and doors, and pipe-work. It also normally includes your bathroom and kitchen and most built-in interior fittings. External structures, such as garages, sheds, outbuildings, awnings and greenhouses are often also covered but you may have to specify them separately on your policy.
What’s not covered?
Boundary walls, fencing and gates, paths and driveways and damage to gas, electric and water supply pipes may not be covered under a basic policy so do check the small print.
Flooding and Subsidence
Firstly, check whether you live in a high-risk area as you may not be eligible for cover. If your home is located in an area prone to flooding or has suffered subsidence (upward movement of ground beneath the property) it may be tricky to find cover and you might need to consult a specialist provider.
Read through all your policy documents carefully to make sure you fully understand what's covered in relation to these issues. Most standard home insurance will have some level of flood and subsidence cover.
Make sure you’re aware of the excess attached to the policy. If your home is high-risk, this might be quite high. Most providers expect claimants to pay at least the first £1000 of the claim - so be prepared. In addition, cover may cost significantly more for high-risk properties but it could prove invaluable.
How much cover do I need?
The rebuild cost will give you an indication of how much you should insure your home for and is usually much less than the current market value of your property. Calculating an estimated rebuild cost is easy using the BCISrebuild calculator or, you can have your property assessed by a chartered surveyor who can provide a full Rebuilding Cost Assessment for around £200. It’s important that you get an accurate rebuild cost for your home to avoid over- or under- insuring your property.
Compare buildings and contents insurance quotes from different providers to help you find the right deal for your home and your budget. Buying both policies together from the same provider could be the most cost effective option.