Buildings Insurance cover

Home insurance provides people with cover in case their property suffers damage or is destroyed. In return for payment – or premiums – the insurance company will provide the necessary amount of cash to cover any loss that occurs to the home, provided that it is covered in the policy.

There are two main kinds of home insurance, buildings insurance and contents insurance. Buildings Insurance provides cover for the actual bricks and mortar of your property and anything which is permanently fixed to your home and the surrounding land, if you own it.

What does it cover?

As well as accidents, natural disasters such as floods and storms, subsidence and vandalism, buildings insurance also covers homes against burglary. If a fire happens in your home, for example, and causes any kind of damage, a buildings insurance policy could cover the costs involved in finding alternative accommodation as well as making repairs.

Buildings insurance can also cover some of the fixtures of your home such as baths, sinks and doors. Garages and objects fixed to your garden, such as a gate, can be included. Items such as pipes could also be included in more expensive policies.

Who is buildings insurance for?

It is pretty much compulsory for anyone with a mortgage to take out buildings insurance on their home. However, having a buildings insurance policy will also provide you with peace of mind that should your home suffer damage your bank account won't break as a result.

If you are a landlord, you must still take out buildings insurance on the property you are renting. If you own the leasehold on a flat, the management company which owns the freehold will take responsibility for this.

Pitfalls of Buildings Insurance

Watch out for exclusions. While an insurer might include cover for all items in your garden, they might state that swimming pools are not included in this. Insurers can be quite fussy – they might allow you to claim for damage caused by a leak to your water tank, but not for the cost of repairs.

Check the excess. This is a set amount of money the policyholder must pay when making a claim. The insurance company will then pay the remaining amount on top. Although a higher excess will usually mean low premiums, it is worth deciding whether it will cost more in the long run to pay out a high initial amount from your own pocket in the event of a claim. If the claim made is lower than the excess – you will end up paying for the entire claim yourself.

If you extend your property, don't forget to tell your home insurer because the sum for which you are insured is likely to rise.

Where to buy Buildings Insurance

Home insurance is a broad product. You can buy tenants' insurance, landlords' insurance, fire insurance, second home insurance, students insurance and many more. You can buy buildings or contents insurance as separate products or together, from the same insurer. And, in fact, doing this in some cases can save you money as insurers might offer discounts.

Insurance brokers will help you to search the market and find the best policy to suit your needs, but might charge an extra fee. Or you can go straight to an insurance company. If taking the latter route, make sure you do your research and compare quotes to ensure you are buying the most competitive deal. Price comparison websites can help with this – but remember they only include a range of products, not all on the market.

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