Buildings insurance is a type of home insurance. If your home is destroyed or made uninhabitable by fire, storm, flood or vandalism then buildings insurance will cover your financial losses.
Mortgage providers will usually insist that you have buildings insurance because the loan is based on the fact that they can repossess your house if you are unable to pay. There are many policies with different levels of cover available but normally cheaper policies offer less financial protection in the event of disaster with smaller payouts and fewer expenses covered.
All buildings insurance policies ought to cover the actual structure of your house and should include all the things that would not come with you when you move house, such as your bathroom fixtures and fitted kitchen cabinets. Garages, greenhouses and sheds are included in most buildings insurance policies, but plants, fences and boundary walls may not be.
Do be sure that your policy covers the cost of completely rebuilding your house, including any amendments you have made. Make sure that you tell your insurer if you make any significant improvements to your home, for example the building of an extension. Your buildings insurance premium will be calculated based on the condition the insurer knew your home to be in, and any claims you are awarded will be based on this.
Under insurance, when the amount you receive does not cover your losses, can be a terrible financial blow, so make sure that you carefully consider the level of cover you require. Prices can differ greatly so do shop around. Most home insurance providers offer combined buildings and contents insurance which is good value.
Contents insurance is for all the items that are not permanent fixtures in your home, such as white goods and furniture. If you are renting, your landlord is responsible for obtaining buildings insurance, but your own possessions will not be covered.
To insure your own things, you should take out a separate contents insurance policy. If your home is perceived to be high risk, for example due to a history of flooding, then your premium is likely to be higher and you may struggle to find an insurer.
There are specialist buildings insurance companies who deal with high risk properties, so if your home is in that category you may need to look at their products and brace yourself for a bigger bill.
