1 min read
10th December 2018

Do I need buildings insurance?

Houses

Do I need buildings insurance?

If you own a home with a mortgage then buildings insurance is normally a requirement from your mortgage provider.

If you own a flat on a leasehold, the responsibility for buildings insurance may rest with you, or with the freeholder – you would need to check your contract to be sure.

If you’re a tenant, the buildings insurance will be the landlord’s responsibility, you will however need to insure your own contents, more information.

What does insurance buildings cover?

It covers the structure of your home alongside the fixtures and fittings against standard perils such as fire, flood, storm, lightning, explosion, escape of water etc. What we mean by fixtures and fittings is, if you have a fitted kitchen or bathroom, it is the buildings cover that covers any damage, rather than your contents insurance. Contents insurance would cover any moveable furniture in the property.

How much should you cover your buildings for?

The buildings cover should be to the amount it would cost to rebuild your home (this is normally stated on your mortgage), it is not the price or the value of your property.

You can calculate the rebuild costs of your home by visiting the Association of British Insurers (ABI) web-page where they have an online calculator 

Beware

  • Your claim made not be paid if you have not maintained your property, for example: if you have a claim for water damage caused over a period of time by a blocked or leaking gutter, as the damage was preventable – had the gutter been cleaned out or repaired.
  • It is vital to get the sums insured correct as if you underestimate the rebuild value of your home, then this again could result in a claim being turned down or claim settlement being reduced as you may be judged to have taken on some of the insurance risk yourself.
  • Most polices don’t cover accidental damage as standard so if your likely to do D.I.Y. then it may be best to take out the extra cover for accidental damage to your buildings.

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