Why Do You Need Buildings insurance?
A property represents a significant investment, so if you own your own home you will need to make every effort to protect your investment into the future. Building insurance can provide you with financial compensation in case your home is damaged by fire, floods or subsidence.
If you consider that the average home in the UK costs £220,000, then you will see how important it is to protect this significant investment against damage, and mortgage lenders fully appreciate this and will normally insist on a comprehensive building insurance policy as part of any mortgage agreements.
What Does Buildings Insurance Cover?
You will have to check each individual policy to see what is covered, but a basic policy will pay out if your home is damaged by fire or subsidence. Floods are a more difficult issue, as if you live on a flood plain you may find it difficult to get a policy that will protect you from this kind of damage.
Buildings insurance will pay out to completely rebuild your home to its current market value should it be destroyed, or will pay out to replace any individual rooms, fixtures or fittings that are damaged. Your belongings and the content of your home is not covered by buildings insurance, you will need a separate contents insurance policy for this.
Leasehold Properties
Leasehold property owners will need to check that the freeholder has not already arranged a policy for the whole building, as this will mean you do not need your own separate policy.
When buying buildings insurance make sure you shop around so that you get the best deal you can, and don’t forget to read the small print very carefully to make sure you have got the cover your need for your home and its current market value.
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