Buildings insurance is important. But what exactly is it and what does it cover?
Buildings insurance is one of two aspects of home insurance. The other is contents insurance.
Buildings insurance is a policy that will pay out if the building becomes damaged. It covers damage to the walls, floors and roof of the property. It might pay out in the event of a fire, flood, subsidence or other incident that causes damage to the building itself, rather than the contents within.
It may also cover damage to fixtures and fittings such as a fitted kitchen or bathroom.
Why do I need it?
Structural damage to a property can cost a fortune to put right. So it’s really important that you have insurance that covers the cost of repairing or rebuilding the property.
If you live in an area that is at risk of flooding, you will probably pay a lot more for your buildings insurance. But the fact that you live in such a place means that the insurance is all the more crucial.
If you have a mortgage, it’s normal for your lender to demand that you have this cover in place.
Make sure you look carefully through a proposed policy to check that there is adequate cover in place.
What is not covered?
Buildings insurance does not protect the items that you have in your home. To cover items such as televisions and jewellery, you’ll need a contents insurance policy.
You also need to know that you’ll have to pay an agreed excess in the event of a claim.
The two types of home insurance are often sold together. Find an insurance provider you can trust with the Fairer Finance tables. Providers with Gold, Silver and Bronze Ribbons may not always be the cheapest, but they have happier customers who are more likely to trust the company too.
I rent. Do I need buildings insurance?
If you rent, it is your landlord’s responsibility to have buildings insurance in place. They may hold a contents policy that covers the cost of repairing or replacing an oven or the carpets in the property. But they won’t supply cover for your possessions.
Tenants should consider taking out a contents insurance policy that covers their own belongings. This is particularly necessary if you have high-value items like jewellery.