If you are purchasing a home, then buildings cover is something that your mortgage provider will insist on. This is because it insures the permanent structure of a home, and essentially until you fully pay off your mortgage, “your” house is their investment too.
It’s important to note that although your mortgage provider may offer you certain reduced rates on buildings cover, it may work out cheaper using an independent insurance company.
Along with the actual structure of the house, other permanent fixtures are also commonly included in the cover (e.g. baths, sinks, toilets, fitted kitchens). Boundary features (e.g. fences, walls), garage and out buildings may also be included.
The eventualities you are likely to be covered against are similar to those provided with “contents cover”; with the addition of cover against riots, subsidence, and impact from vehicles, storms, falling trees and objects from planes.
As with “contents cover”, you will not be covered against; war, terrorism, radioactive contamination, pollution and also pressure waves from aircraft (which can often cause damage to windows).
All of the above factors will vary widely from policy to policy, so it’s important to ensure you have adequate insurance for your property.
This is often achieved using a “surveyor”, who will be able to perform varying degrees of assessments on a property, allowing you (and your mortgage provider) to get a good idea on how much your premiums will cost.
Subsidence is a common factor which can push up premiums, along with areas prone to flooding.
In these situations it’s vital to get the most comprehensive assessment performed by the surveyor. Which, although more expensive, should aid greatly in any
home insurance claims relating to such events.
The
house insurance market is currently a very competitive one, so obtaining relatively
cheap home insurance shouldn’t be too difficult providing thorough market research is performed.
