Buildings Insurance, what does it cover?

It is common for anyone with a mortgage to have buidlings insurance, as this is often a stipulation made by the Lender to protect their investment. However, it is important to realise that you are not required to purchase this policy from your Lender. Shopping around is always advised to ensure that you are getting the best cover at the best price.

This insurance provides cover in case the house needs to be partly or completely rebuilt due to fire, subsidence, flooding or other acts of god. Check with different companies to see what they include in their policies. The amount that you are insured is not the market value of the property, but its rebuild costs. The market value and what it would cost to rebuild the property are two very different values and you can check this value on the Building Cost Information Service website www.bcis.co.uk

Building insurance policies often come with an excess. This is the amount that you are prepared to pay towards the cost of any claim. By increasing the excess you will find that your premium reduces. The premium refers to the cost of the insurance which can either be paid yearly, quarterly or monthly.

Whenever you come to renew your policy, it is important that you shop around and compare prices, it does not always pay to stay with the same company. Although some companies will offer a discount if you renew your policy and haven't made a claim or if you have more than one insurance policy with them, for this reason it is common to use the same company to insure your building and your contents.

Download the Home and Contents Insurance PDF Guide here - see our other free PDF guides here

Guide Contents

Advice on Contents and Home Insurance Cover
Buildings insurance, what does it cover
Contents insurance, what does it cover
Shopping around for home contents insurance
Applying for buildings and contents insurance
House insurance FAQ
Home Insurance Information

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