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Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
29.10.2024
Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
29.10.2024
What Is Buildings Insurance?
Buildings insurance is a type of policy that covers the structure of your home. It protects against potential damage caused by events such as fire, floods, storms, and other natural disasters. This form of building insurance covers permanent fixtures like the roof, walls, floors, windows, and often includes external structures such as garages and sheds. If you’re a homeowner, home building insurance is essential to protect one of your most valuable assets.
Who Needs Buildings Insurance?
Property Owners
If you own a property, having buildings insurance is crucial. Whether you live in the home or rent it out, this insurance ensures you’re covered if something happens to the structure of your house.
Landlords
Landlords should have building insurance to cover their rental property. It helps cover costs if repairs are needed due to accidental or weather-related damage, ensuring the property can remain habitable for tenants.
Flat Owners
Flat owners who own the freehold of the entire building or have individual flats may need buildings insurance. If you’re part of a leasehold agreement, you’ll need to check if your building’s insurance is covered by the freeholder or property management company.
Tenants
Tenants typically do not need buildings insurance, as it’s the property owner’s responsibility. However, they might need contents insurance to protect their personal belongings.
Is Buildings Insurance a Legal Requirement?
While buildings insurance is not a legal requirement, it is often mandatory if you have a mortgage. Lenders typically require you to have building insurance for a mortgage to protect their financial interest in the property. Even if it’s not required, it’s highly recommended to have coverage in place to avoid the high cost of repairs in case of damage.
What Does Buildings Insurance Cover?
A buildings insurance policy typically covers the following:
- Fire damage
- Storm damage
- Flood damage
- Subsidence
- Vandalism
- Burst pipes
- Falling trees
- Damage from vehicles or aircraft
While the policy covers the building structure, it does not cover the contents of the home. For full coverage, you may want to consider adding contents insurance to your policy. Always check your policy documents for exclusions and limitations.
What Extra Cover Can I Add to Buildings Insurance?
Depending on your needs, you can often add the following extras to your buildings insurance policy:
- Accidental damage cover – for unexpected accidents, like drilling into a pipe or breaking a window.
- Legal cover – for legal expenses arising from property disputes.
- Home emergency cover – for urgent issues like a burst pipe or a broken boiler.
- Alternative accommodation – covers the cost of temporary accommodation if your home becomes uninhabitable.
How Much Does Buildings Insurance Cost?
The cost of buildings insurance varies depending on factors like your property’s location, size, and construction type. On average, the cost ranges from £100 to £250 annually. If you’re in a higher-risk area, such as a flood zone, premiums may be higher. Comparing quotes from different providers can help you find the best deal on building insurance.
Key Considerations When Choosing Buildings Insurance
When selecting a buildings insurance policy, keep the following in mind:
- Excess fees: Check how much you would need to pay before the insurer covers the remaining cost of repairs.
- Inclusions and exclusions: Always read the fine print to know exactly what’s covered and what isn’t.
- Combined policies: You might save money by combining buildings and contents insurance.
How Much Should I Insure My Property For?
The amount of building insurance you need depends on the rebuild value of your home. This is different from its market value and reflects the cost of rebuilding the property from scratch, including labour and materials.
What Makes Up the Rebuild Value?
The Age of the Property
Older homes may cost more to rebuild due to the higher cost of sourcing materials and labour specific to older structures.
The Building Materials
The materials used in the construction of your home play a significant role in determining the rebuild cost. Homes made from traditional brick or stone tend to have lower rebuild costs compared to those with more unique or non-standard materials.
Location
The location of your home can affect the rebuild cost. Properties in areas prone to flooding or subsidence often come with higher premiums due to the increased likelihood of damage.
Subsidence Risk
If your home is located in an area with a history of subsidence, your buildings insurance premium may be higher to reflect the increased risk.
Flooding
Homes in areas that are prone to flooding may also face higher insurance costs due to the potential for significant damage.
Number of Rooms, Doors, and Windows
The more rooms, doors, and windows your property has, the higher its rebuild value will be.
What Do I Need to Get a Buildings Insurance Quote?
To get a buildings insurance quote, you’ll typically need the following information:
- Property details, such as build date and construction type.
- Rebuild value of the home (this can be obtained through an online calculator or surveyor).
- Any security features, such as alarms or locks.
- Details of previous insurance claims (if applicable).
Why Use Ascot Mortgages?
At Ascot Mortgages, we pride ourselves on offering expert home insurance advice tailored to your needs. Our team will help you find the best building insurance policy by comparing quotes from leading providers. Whether you’re looking for building insurance for a mortgage or want to ensure your property is fully protected, we are here to help you make an informed decision.
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FAQ
The cost of building insurance varies, typically ranging between £100 to £250 per year, depending on factors such as property size, location, and risk factors like flooding or subsidence.
Buildings insurance covers the structure of your home, while contents insurance protects your belongings inside the home, such as furniture, electronics, and valuables.
If your property is made from materials other than brick, stone, or tile, it may be considered non-standard construction, and you may need specialist insurance.
No, a garage is typically not counted as a room, but it should still be included in your building insurance policy.
Rising damp is usually not covered by standard building insurance policies, as it is considered a maintenance issue rather than sudden damage.
Yes, you can get buildings insurance in a flood-risk area, though it may come with higher premiums. You may also want to check if you qualify for the Flood Re scheme, which helps reduce costs for homes in high-risk areas.
Yes, many buildings insurance policies will cover subsidence, but it’s important to check your policy details as this may come with higher excess fees.
If you’re a leaseholder, it’s usually the freeholder’s responsibility to arrange buildings insurance. However, always check your lease agreement to be sure.
Major renovations or extensions may not be automatically covered by your policy. Notify your building insurance provider before starting any significant work.
No, only the property owner can take out buildings insurance, though tenants may need contents insurance.
Yes, most buildings insurance policies cover leaks caused by sudden events, such as a burst pipe, but slow leaks or poor maintenance may not be covered.
You should insure your property for its rebuild value, which is the cost of rebuilding the property from scratch, not the market value.
Buildings insurance typically covers damage caused by fire, storms, floods, subsidence, and other significant events affecting the structure of your home.
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