Buildings Insurance Explained
Having a roof over our heads is possibly the most important factor in our day to day lives. Not only is it a place of security for our families but also contains some of our most important possessions. As we continue with our guide to home insurance, this section will discuss in detail the importance of buildings insurance.
Considering the high cost to purchase your home in the first instance, there are not many of that would be able to afford the cost to repair or even rebuild our homes in the event of an accident or disaster.
Having a comprehensive buildings insurance policy can protect your home from all sorts of disasters such as your house burning down, storm/flood damage or subsidence. Opting for the cheapest building insurance policy may not always be the best option as it may miss out certain details that are important to you and your home. This is why moneysupermarket.com has teamed up with the top UK home insurance companies, so that whatever the emergency your home is covered from top to bottom.
What does a buildings insurance policy include?
Most mortgage providers will now insist that an adequate home insurance policy is in place before you purchase your home. As they are providing you with a loan to purchase your home it is in their best interests to make sure their investment is protected from events beyond theirs a your control. These can include the following:
- Subsidence
- Storm/Flood damage
- Fire, smoke and explosions
- Vandalism or third party damage
- Burst pipes and other incidents of water leakage
When purchasing a policy you will be asked for the cost to rebuild your home in the event of total loss. Be careful to read the terms and conditions of any policy as some will only give you the market value of the property. A policy could also cover the costs of alternative accommodation should your home become uninhabitable for any reason.
As well as the properties structure, a policy can also cover your homes permanent fixtures and fittings such as baths, toilets and fitted kitchens. A permanent fixture or fitting is determined by whether or not you can remove say a fitted cabinet and take it to a new home. Outbuildings such as garages, sheds, greenhouses can also be covered but this may come at an extra cost. Carefully check what is included on a policy you may need to purchase additional cover more lavish items such as a swimming pool.
Buildings insurance is vital for any homeowner. Purchasing a property is a very costly investment and protecting it should be your top priority. Tenants on the other hand only need concern themselves with their possessions which a contents insurance policy will take care of. The properties structure and its permanent fixtures and fittings will be covered by the landlords insurance.
Be careful not to invalidate your buildings insurance
Buildings insurance is there to protect you from the unexpected and to save you from financial ruin. This is why it is important to be aware of the ways in which your insurance policy can become invalid if the necessary measures are not taken care of.
The main way your household insurance can become invalidated is when you are having work done on your property. Whether that be by you or external builders.
Before any work is carried out on your property make sure you inform your insurer of any planned onsite work and find out if you will need to increase your cover for the duration of the work.
If there are any structural changes such as extensions or modifications such as removing walls, then again you will need to inform your insurer. This is because any structural change could lead to an increased risk factor to both the property and its occupants.
The same goes for work that involves your homes security being put at risk. If windows, doors or external walls need to be removed, this could make your home more vulnerable to burglary.
Whatever work you have carried out on your property it is vital that you always let your insurer know about it before and after its completion. It is simply not worth invalidating your policy should the worst happen.
In part three we will look at insuring your possessions with a contents insurance policy.