What does buildings insurance cover?

Buildings insurance can help you cover the cost of repairing or rebuilding your home if it’s damaged by certain events, like a fire or a flood. Here, we look at how it works and what you’ll need to consider so that you can find a policy that suits you. 

What is covered by building insurance?

Buildings insurance covers the structure of your home, including the walls, floors, ceilings and roof. Policies can also cover any permanent fixtures and fittings, for instance, pipes, gutters and fitted kitchens and bathrooms. 

Policies vary by insurer but generally speaking, you can expect buildings insurance to pay out in cases of:

• Fire
• Flood and storm damage
• Subsidence
• Burst pipes and water damage
• Vandalism and theft

Remember – buildings cover only pays to repair or rebuild the physical structure of your home. Your belongings, including your furniture are covered by contents insurance instead. 

Does buildings insurance cover sheds and greenhouses?

This depends on what your policy says. Most buildings insurance cover garages, sheds and greenhouses but it’s worth double checking just to be sure. And if you’re lucky enough to have stables, tennis courts or a swimming pool, it’s also worth checking what your policy says about these too. 

What is not covered by buildings insurance?

Almost all insurance policies come with a set of exclusions, these are events not covered by the policy. Again, these are likely to vary by insurer, but typical exclusions include:

• Wear and tear – insurers are unlikely to cover the cost of replacing something because it’s old or worn through age.
• Damage caused by negligence – for example if walls become damp because gutters are filled with debris and fail to drain water.
• Empty homes – most insurers will expect property to be lived in, and many won’t cover you if the home is empty for a certain length of time (usually 30 or 31 days in a row). If you know your home will be empty for a long period, you should tell your insurer. They may be able to amend your policy or offer you ‘unoccupied home insurance’ instead.

How much buildings insurance do I need?

The amount of cover you need is officially known as the ‘sum insured’. The amount should be enough to cover the cost of rebuilding your home should it be completely destroyed (it sounds drastic but insurance is your safety net in case things go wrong). Bear in mind that your home’s rebuild cost isn’t the same as its market value.

If you’ve just bought your home and have a mortgage in place, its valuation report should include the rebuild cost. If not, you can use the free Buildings Cost Information Service which can help you work this out.

Otherwise, you can ask your insurer for help. Most will use a formula known as the ‘bedroom-rated’ method, this bases the sum insured on the number of rooms in your home. One of the big benefits of using this method is that you can be fairly confident that the sum insured will be more than enough to rebuild your home.

If you want to err on the side of caution, you can also have an unlimited sum insured. This is exactly as it sounds so you won’t have to specify an amount, but it can mean paying more than you need to.

How much does buildings insurance cost?

What you’ll pay for cover really depends on a number of things and insurers will take into account:

• Your address – if your home is in an area where a claim is more likely, you can expect this to be reflected in your premium, for instance, if you live somewhere with increased flood risk.
• The sum insured – this includes the cost of materials and considers any specialist labour or building methods you might need, for example, if your home is made of timber or is listed. 
• Previous claims history – if you’ve made a recent claim (usually within the last five years) this can mean you pay more.  

Do I need buildings insurance by law?

You don’t need buildings insurance by law but if you have a mortgage, your lender could insist that you have it. In some cases, it might even be a condition of the loan. 

If you own your home outright, you don’t have to take out buildings insurance. But remember – if your home is damaged because of an insurable event like a fire, it would be up to you to cover the cost of repairs. 

I rent my home, do I need buildings insurance?

If you rent a room or an entire property, it’s up to your landlord to arrange buildings insurance. Nevertheless, it’s crucial to check that this is the case, and it’s a good idea to ask your landlord if it’s not written in your tenancy agreement. Furniture, electricals and even kitchen utensils provided by the landlord should also be covered under their own contents policy.

Don’t forget that as a tenant, it’s up to you to insure your own belongings with your own contents insurance policy. This should cover everything you’ve brought with you, including any furniture that’s yours. 

Compare buildings insurance quotes for value and peace of mind

Comparing quotes can help ensure you get the right policy for your home and budget. Not only will you be able to see what’s on offer, you’ll also be able to compare exclusions and decide for yourself what counts as value for money.