Buildings Insurance

What is Buildings Insurance for?

If you have a mortgage, your lender will insist that your mortgage property (and their security) is protected by buildings insurance. This insurance usually pays out if your property is destroyed by fire, floods or subsidence (although you will need to check if you live on a flood plain, for example).

Damage to fixed fittings such as baths and kitchens are often included, as well as sheds, greenhouses and garages.
You might be offered buildings insurance when you take out your mortgage, but you don't have to take what's on offer. You must use the keyfacts policy summary to shop around and get the best deal for you.

If you purchase a leasehold property (such as a flat in a block of flats) the freeholder may have arranged buildings insurance for the whole block, in which case you may not need your own buildings policy.

What isn't covered in Buildings insurance?

Your cover is based on what your home would cost to rebuild. You can check whether you have enough buildings insurance through the Building Cost Information Service (BCIS) website. It has an online tool to help you calculate the sum you should insure your building(s) for, in case your home has to be entirely rebuilt.

You need to tell your insurer if you extend your property, for example with a loft conversion or conservatory. Your belongings are not covered – these need to be covered separately with contents insurance.

Keeping costs down for buildings insurance

As always, shop around. You may also find that you get a better deal if you buy buildings and contents insurance together. Most policies have a standard excess charge which means you agree to pay the first part of any claim, for example the first £50 or £100. If you agree to pay a higher excess you might get a cheaper policy. Always compare what's covered by a policy, not just the price – the keyfacts policy summary will help you do this. Some might be cheaper than others, but they may not offer the same level of protection.

Important tips for buildings insurance

Read the paperwork and ask questions if you don't understand anything.

Make sure you check what you're covered or not covered for.

Shop around when it comes to renewal time to make sure you're getting the best deal.