What is buildings insurance?

Your home is precious, so it’s important to insure it in case the unexpected happens.

The prospect of your property getting damaged or destroyed might be the last thing any of us want to think about. However, the cost of rebuilding or repairing could be very expensive and it’s important to bear in mind how you would be able to pay for this.

Buildings insurance is usually a condition of your mortgage, but most homeowners would choose to have it anyway. That’s because it covers the cost of repairing damage to the structure of your home, as well as outbuildings and permanent fixtures and fittings.

It includes:

You should insure your property for the amount it would cost to rebuild from scratch. This is not the same as its market value, which is how much the house would sell for. Since you wouldn’t have to buy the land again, the cost of rebuilding is almost always lower than the market value.

If you have recently had a Homebuyer Report carried out when you bought the property, you can usually find the rebuild cost in the report.

Alternatively, some policies offer unlimited buildings cover, so you don’t have to worry about being under-insured.

No two policies are exactly the same, but you’ll generally be able to claim if your home is damaged by:

Each policy has its own exclusions, but most won’t cover you for:

 General wear and tear

 Leaking gutters  

 Frost damage to outside pipes and brickwork  

 Damage caused by birds, insects and vermin

Standard policies also won’t usually cover you for accidental damage, but you can add this as an optional extra.

Buildings insurance doesn’t cover your possessions, such as carpets and freestanding kitchen appliances. For that you’ll need contents insurance.

You can buy buildings and contents insurance separately, but if you need to make a claim you might find that having it with the same insurer makes the process easier.