Buildings Insurance

Buildings Insurance is designed to give you financial protection against damage to the structure and fabric of your home, should the worst occur. The premium you pay allows for the provision of funds to repair your home should it be damaged by any cause that is listed in the policy. It will also provide funds to rebuild your home in the event of it being totally destroyed or damaged to the extent that a complete rebuild of your home is the only way to make it habitable.

In addition to covering the basic structure of your home, Buildings Insurance also provides protection for permanent fixtures and fittings such as windows, roofing, baths and toilets, fitted kitchens and bedroom cupboards, floors, electrical wiring and plumbing against any of the events listed in the policy. With most buildings insurance policies, not only is the fabric of the home protected but also outbuildings such as garages, greenhouses and garden sheds (this is not always the case so make sure you know exactly what is covered and what isn’t before you buy the policy). Structures such as boundary walls, fences, gates, paths, drives and swimming pools are usually not covered although this may vary according to what kind of policy you buy and which company you buy it from.

Most Buildings Insurance policies cover damage to your home caused by natural ‘disasters’/occurrences such as earthquakes, storm damage and flood damage, subsidence, heave and landslip and even the event of your home being damaged by a bolt of lightning! Your home is also covered against loss caused by fire or smoke, loss due to explosion, damage caused to your property by malicious acts (other than those committed by people who are there with your consent, such as family members etc), damage caused by riot or civil commotion, falling trees or branches, impact by vehicles or animals, escape of water from tanks or pipes, breakage or collapse of aerials and even aircraft or things falling from them (because you never know, theoretically it could happen). It also usually covers property owners for claims relating to public liability. For example, if you live in a terraced house or have an adjoining neighbour and your house catches on fire, it could cause damage to the adjoining property. Or if a roof tile should fall off your roof and cause injury to another person or damage to another person’s property. In basic terms, if, as owner of your home you are responsible for any injury to someone or for damage to their property your policy will pay the damages and cost for which you are legally liable.

Of course, as with most forms of insurance, most companies will offer policies that cover events in addition to those mentioned above. Buildings Insurance is usually available in two types of policy. One covering specific defined events (such as earthquake, explosion etc) and the other covering accidental loss or damage (such as accidental breakage of most permanently fixed glass and ceramic items forming part of the building, for example, windows, toilets, sinks etc). Some policies may offer additional cover such as ‘emergency repairs’ and ‘alternative accommodation’ – if your home is so badly damaged that you cannot live in it until repairs are done, your policy will contribute towards the cost of alternative accommodation (but bear in mind most companies will only contribute up to a certain amount which may not entirely cover the cost of alternative accommodation – you may also have to make a contribution towards the cost).

When purchasing a Buildings Insurance policy you need to make sure that the sum insured is equal to the full re-building cost of your property (the sum insured is the maximum amount the insurance company can pay you). Bear in mind that the rebuilding cost of a building is not the same as its market value.

Although many people see Buildings Insurance as being costly, the consequences of not having any (and hence the cost of rebuilding or repairing your home) could be far greater. Some aspects play an important part in determining the cost of your Buildings Insurance premiums, for example the area you live in, as insurers may find that your postcode area is more prone than others to subsidence damage or losses caused by theft or weather conditions (such as floods). Your age may also affect your premiums.

As with all Insurance, be sure you understand exactly what the policy covers you for before you buy, and also what you are not covered for. Most companies offer a ‘cooling down’ period in which you can cancel your policy should you change your mind.