Home Buildings Insurance

All mortgage lenders will insist that you take out Home Buildings Insurance on your home. There are a good number of mortgage lenders who insist that you take out one of their own insurance products as a part of their mortgage offer deal. Although, as a rule, they can only do this if you have agreed prior to accepting the mortgage deal.

Buildings insurance generally covers structural damage costs to your property such as:  roof, walls, ceilings, floors, doors and windows. Buildings insurance covers permanent fixtures and fittings, interior decoration and underground tanks, pipes, cables, and drains for which you are accountable from your home to the mains supply. Outside structures such as garages, fences and suchlike are covered only if the policy specifically states as much.

In addition, buildings insurance will cover the total cost of rebuilding your property should the need arise and you must make sure that the amount the policy covers is a true reflection of the actual rebuild costs.

Generally, most buildings insurance policies cover loss or damage as a result of:

• Subsidence

• Fire

• Theft and attempted theft

• Inclement weather

• Earthquakes

• Malicious damage/vandalism

• Vehicle or aircraft impact

• Falling trees and suchlike

• Frozen pipes

Each buildings insurance policy will stipulate its own interpretation of what is covered and what is not. It is of vital importance that you thoroughly check through any policy to be sure that it is suitable and appropriate for you.

If the need for alternative accommodation arises due to it being inhabitable until it has been repaired, most buildings insurance policies will cover these costs to a certain limit, again, checking the terms and conditions are important.

Another very important thing to remember is that when buying or selling a house, liability for the buildings insurance passes to the new owner when the contracts are exchanged. Consequently, you must ensure that the property is insured from the day that contracts are exchanged.

Failure to comply with this will result in you having to bear the costs if your property is damaged or destroyed. When selling your property, you are legally obliged to keep it insured until the sale has completed.

Choosing buildings insurance

With so many different Insurance companies around, it is imperative that you do some research before deciding on a particular policy. You would be surprised or maybe not at the difference in prices quoted for buildings insurance policies. They can vary considerably in some cases, so it will save you a lot of money if you do your homework prior to making a decision.

Comparisons on what each different policies cover or do not cover will have a major impact on your final decision. I cannot stipulate enough how important this is. You will certainly not want to wait and find out after you have taken out your buildings insurance policy that it does not cover what you thought it did. Particularly check for any exclusions in the policy - which means risks that are specifically excluded.

All buildings insurance policies have what is known as an “excess”, this is an amount that will have to be paid by you. The amount of excess will vary with each insurance company. Normally, the lower the excess, the more expensive the policy will be.

Changes such as home improvements should be notified to your buildings insurance provider straight away, it is your responsibility to ensure this is done.