When should I get buildings insurance?

Key takeaways

• Buildings insurance covers the cost of repairing or rebuilding your home’s structure if it gets damaged by an event such as fire, flooding, a storm, vandalism or subsidence.

• It usually covers the main building, as well as fixtures; and fittings – and it may also cover outbuildings, garages, fences, and boundary walls; this will depend on the policy.

• While buildings insurance is not a legal requirement, most mortgage lenders will insist on you having it in place to protect their investment.

• Buildings insurance is typically needed from the point at which you exchange contracts, as this is when you become legally responsible for the property. It's important not to wait until you move in, as incidents could potentially occur during that period.

What does building insurance cover?

Building insurance in the UK typically covers the permanent structure of your property against damage from various risks, such as fire, flooding, storms, vandalism, and subsidence. It usually includes the main building, as well as fixtures and fittings, such as your fitted kitchen and bathroom suite.

Policies will vary between insurers, but may also cover outbuildings, garages, fences, and boundary walls. Some will include liability protection in case someone is injured on your property.

As well as paying to fix your property, if the damage to your home is so severe that it is rendered uninhabitable, you might also have the cost of temporary accommodation covered while the repairs are being made.

However, specifics vary between policies, so it's important to review the terms carefully to ensure you have adequate protection in place.

Why do I need to have building insurance?

Buildings insurance is essential for several reasons, including:

• It provides financial protection in case your property suffers damage from events such as fire, floods,

  storms or vandalism. Without insurance, the cost of rebuilding your home could be overwhelming, potentially leaving you without a place to live

• Many mortgage lenders require buildings insurance as a condition of the loan. This is because they want to safeguard their investment in your property. until you’ve paid off the mortgage and own your home outright

• Buildings insurance typically includes public liability cover, which protects you financially if someone is injured on your property. In the unfortunate event of a severe injury or fatality, the payout could be substantial, potentially far exceeding your personal assets. The cover can pay for legal costs and compensation claims

• Buildings insurance offers peace of mind and financial protection against unforeseen events that could otherwise have devastating consequences

When do I need to have buildings insurance in place?

In the UK, when buying a home, you should look to get buildings insurance in place when you exchange contracts - and become legally responsible for the property.

While buildings insurance is not a legal requirement, most mortgage lenders insist that you have this type of insurance as a condition of the loan to protect their investment. For a lender, your home is security for the loan.

Without insurance, you could be exposed to significant financial risk if the property suffers damage before the sale is finalised.

Start researching and arranging buildings insurance as soon as you have a confirmed offer accepted on a property. This will ensure that you have adequate cover in place by the time you exchange contracts.

How far in advance can I get buildings insurance?

You can usually arrange buildings insurance well in advance, but you don’t actually need it to start until exchange of contracts.

Can I wait until I move to get building insurance?

While buildings insurance is not a legal requirement, you will not be able to move in without it if it is a condition of your mortgage.

On the rare occasion that the mortgage company does not insist on having buildings insurance in place, or you are purchasing the home without taking out a mortgage, you can wait until you move before taking out a policy.

However, this is probably unwise given the risk of an event happening between exchanging contracts - when you take legal ownership of the property - and moving in.

What you need to realise is that costly incidents can occur when a property is vacated – or even during the moving process itself.

Given the relatively low cost of building insurance, it's worth thinking about whether this is a risk you want to take. It could be a false economy.

When do I get home insurance for a new-build property?

With a new-build the guidelines are slightly different. With this type of property, buildings insurance is usually needed from completion – the point at which you become the legal owner.

Developers often insure new builds up to this point, but you do need to check this.

It’s then vital that you’ve got your own cover ready to start from completion, in line with your lender’s requirements.

If you're buying a new build off plan, you'll need to ensure the property has a postcode assigned to it before you can buy insurance.

The developer is responsible for registering the postcode, but you can contact them if they haven't given it to you. You can also contact the Royal Mail to check the postcode is registered.

If your new home will be empty for a period, you'll need to tell your insurer. [add a space] You may need specialist unoccupied home insurance if your home will be empty for more than 30 days.

Is building insurance a legal requirement?

Building insurance is not a legal requirement in the UK. However, it's highly advisable to have it in place to protect your property, as this is likely to be your most valuable asset. A buildings policy will cover your home from unforeseen events like fire, floods, or vandalism.

Additionally, many lenders require it as a condition of the loan to safeguard their investment – until the point where you’ve paid off the mortgage. If this is the case, you will need to provide proof of having buildings insurance in place before the home loan can be completed.

While not mandatory, having building insurance offers essential financial protection and peace of mind for homeowners.

Is it best to get buildings and contents insurance together?

Yes, getting buildings and contents insurance together can be beneficial as buying one policy is typically cheaper than two separate policies. Many insurers offer discounts when you take out a ‘bundle.’

Having just one policy can also speed up the claims process, reduce the possibility of disputes from conflicting policies, and requires only one excess payment in case of a claim, ultimately saving time and money. In addition, it can be more convenient with just one policy and one renewal date.

That said, there are occasions where separate policies could potentially offer more flexibility or better cover – so it's worth comparing both combined deals and single policies before making any decision.

How much does buildings insurance cost?

The average cost of a buildings insurance policy found on MoneySuperMarket is £241.34^{^} ,£302.13^{^} for buildings and contents insurance.

What’s the best way to pay for buildings insurance?

Buildings insurance can work out cheaper if you pay upfront – and annually – rather than by monthly direct debit instalments. Paying monthly means you’re entering into a credit agreement, so you may be charged interest – and end up paying more overall.

The key is to compare the costs before you make the decision.

Ways to bring down the cost of buildings insurance

• Go for a higher voluntary excess: As you’re agreeing to pay more towards any claim, insurers will often reward you with a lower premium, make sure you can afford the excess before you agree.

• Make sure your home is well-maintained: Taking steps such a clearing gutters and fixing leaks can help lower your risk in the eyes of your insurer and could translate into cheaper premiums.

• Opt for a no-frills policy: While there are some useful ‘extras’ you might want to add on to your policy (more below), you can keep costs down by going without them; just be absolutely sure you don’t need any of these add-ons before leaving them off your policy.

• Find out if there’s a ‘no-claims discount’ available: This could be a good way to save money if you haven’t made a claim in the last few years.

What other policies can I add on to my buildings insurance?

You’ll often be given the opportunity to purchase add-ons such as:

• Legal cover: Financial help with legal fees up to a certain amount when you need to involve the court in a dispute or incident, or if you need to be defended in court yourself.

• Home emergency cover: Covers callouts and short-term damage repairs until your provider can arrange for full repairs to be made. For example, this might include burst pipes, electrical failures or your boiler breaking down.

• Accidental damage: Adding an accidental damage policy can be a useful addition to buildings insurance as an extra level of cover. It protects against sudden, unintentional damage to your home or belongings, such as spills, breakages or DIY mishaps, such as putting your foot through the ceiling.

Should I cancel buildings insurance for a home I’m selling when I exchange contracts?

It's generally not advisable to cancel buildings insurance until the sale of a property is completed and ownership is transferred.

Even after exchanging contracts, unforeseen events can occur, and you want to ensure cover until the deal is finalised.

Talk to your insurer about any adjustments needed, but maintain cover until the sale concludes to avoid potential liabilities and expense.

What happens if you don't have buildings insurance?

If you don't have building insurance, you would be responsible for covering any loss or damage to your home's structure yourself, which could be very costly.

For homeowners with a mortgage, not having building insurance may also violate the mortgage agreement, as lenders often require it as a condition of the loan. Without insurance, you won't be covered for damage caused by events such as fire or flood.

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