What is it?
Buildings insurance covers the physical structure of your home. The average buildings insurance policy currently costs around £110 a year, according to comparison website MoneySuperMarket, but the actual price you pay will depend on your property and the specific risks it may face, such as whether it may be prone to flooding or subsidence, for example.
What does it cover?
Buildings insurance is designed to pay out enough for repairs or to rebuild your property if it’s damaged or destroyed. Policies will usually include things like outhouses such as garages and sheds, as well as fences, pipes, cables and drains up to a certain limit.
The type of scenarios that may be covered by buildings insurance include damage to your home as a result of: fire, smoke, explosions, flood, storms, frozen or burst pipes, subsidence, natural disasters, fallen trees, lamp posts, aerials or satellite dishes, theft, attempted theft, vandalism or malicious damage, vehicle or aircraft collisions.
Do you need it?
If you have a freehold property with a mortgage, you will usually need to have buildings insurance as part of your mortgage agreement. Mortgage providers may offer you buildings insurance as part of their package, but you should also be able to find your own policy on the open market by checking comparison websites.
If you have a leasehold property with a mortgage, you may either need to have buildings insurance with a certain insurer, or the freeholder might take out the policy and pass the cost of it on to you.
If you are living in a rented property, it’s the landlord’s responsibility to arrange and pay for the building’s insurance policy.
Is there anything else you need to know?
If you have a property in an area that is at a heightened risk of any of the scenarios we list above, for example, if your property is situated on a flood plain, you may have to get an enhanced level of protection, which means it’s very likely that you will be paying more for your policy.