Buildings insurance is designed to pay out a sum of money to you if your property is destroyed by fire, flooding or subsidence. Damage to fixed fittings such as kitchens and baths may also be included, as well as garages, sheds and greenhouses.
You might be offered buildings insurance when you take out a mortgage however, you do not have to take what is on offer. Use key policy information to shop around and ensure that you get the best deal.
If you have purchased a property such as a flat in a block of flats, the freeholder may have arranged buildings insurance for the whole block, in which case you may not need your own buildings insurance policy.
What is covered
Your cover will be based on the amount that it would cost to rebuild your home.
You need to inform your insurer promptly if you extend your property, for example with a loft conversion or a conservatory.
Your belongings are not covered under a buildings insurance policy. Personal effects, electrical items and valuables need to be covered separately with a contents insurance policy.
As always, it pays to shop around and compare similar policies offered by different insurance companies. You may also find that you will get a better deal if you buy buildings insurance and contents insurance together.
Most buildings insurance policies have a standard excess charge within the policy terms. This means that you agree to pay the first part of any claim, for example the first £50 or £100. If you agree to have a higher excess sum, you may be able to get cheaper cover.
Remember, always compare what is covered by a policy, not just the price. Some policies may be cheaper than others, but they may not offer the same level of protection.