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Buildings insurance covers the cost of repairs of damage to the structure of your property. This includes outside buildings, fences, pipes, cables, and drains. 

Your insurance should cover the full cost of rebuilding your house. This should include the cost of demolition, site clearance, surveyors, local authority, and architects. 

Building insurance usually covers damage and loss caused by: 

– Fire, explosion, storms, floods, earthquakes 

– Theft, attempted theft, and vandalism 

– Frozen and burst pipes  

– Fallen trees, lampposts, aerials, or satellite dishes 

– Subsidence/heave 

– Vehicle or plane collisions 

In most cases, buildings insurance will be part of the mortgage condition. The lender should give you a choice of insurance provider or allow you to pick one. They can reject your choice of insurer, but they cannot make you use their chosen insurance provider unless your mortgage package includes insurance. 

If you buy a house, you should take out buildings insurance when you exchange contracts. If you sell a house, you are responsible for looking after it until the sale is completed so you should keep your insurer if you have one until then. 

If your mortgage lender repossesses your home, you’re responsible for insuring it until it is sold, and you should tell your insurer that you are no longer living there otherwise you may not be covered. 

However, if you don’t have a mortgage and outright own your home buildings insurance isn’t compulsory but it is still advisable. A house is one of your biggest assets and it is better to have peace of mind in case anything happens. 

If you are a leaseholder, your lease may say that you will have buildings insurance with a named insurer, or the freeholder may take out insurance and charge you for it. 

It is important you insure your house for the amount it would take to completely rebuild your home. This is called sum insured. The cost of rebuilding your home is not the same as the price you would have paid for your home or its current market value. Rebuild costs are usually less than the current market value, so make sure you don’t over or under insure yourself. 

With all the potential outcomes it is advised that you take out building’s insurance in case of anything unforeseen happening. Its just gives that extra peace of mind for your biggest asset/home. 

Buildings insurance is often taken out with contents insurance. Check back next week for our blog on why you should have contents insurance. 

Not sure who to go with for buildings insurance? 

Call us on 01225 962532 

*As with all insurance policies, conditions and exclusions will apply.*