Buildings Insurance There are so many different types of insurance out there that it can become hard to keep up with what’s what. One key insurance policy is buildings insurance. This is there to cover the accrued costs that can arise from needing to repair damage in or on a building or rebuilding the actual structure of the property if there is damage caused to it by an event that you are insured for. This normal covers storms, floods, fires, other natural disasters or possibly vandalism or accidental damage.
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Buildings Insurance So, what exactly is buildings insurance?
This will generally protect all aspects of your property’s structure, including the walls, floors, roof, and permanent fittings and fixtures inside the property. This includes things like in your bathroom or your kitchen. If your property has outside structures, then there is a high chance that your buildings insurance will cover this too. Pipes, garages and sheds can all potentially be protected by the right buildings insurance policy if you can find it.
Buildings insurance isn’t going to be necessary for everyone. The people who will never need it live in a rented property and don’t own any other property elsewhere. If you are living or working out of someone else’s property, it is up to your landlord whether they wish to protect their building with buildings insurance or not. However, as a tenant, you still may choose to look into contents insurance. This doesn’t cover the costs of damage done to the actual building but will protect the things that you own, which you bring into your landlord’s property, from things like theft and damage.
This, of course, suggests that it is primarily landlords and homeowners who will want to look into buildings insurance, although not all landlords and homeowners necessarily have a policy taken out.
If you’re looking into buying your first property with the help of a mortgage, then the chances are that you’ll start hearing about buildings insurance very soon. Almost all lenders will usually insist that you have buildings insurance to their desired standard before providing you with a mortgage. This is likely to be explicitly stated in the contract. This, of course, will only last as long as the lender has an interest in the property.
Once your mortgage is paid off, it will be up to you whether you keep taking out buildings insurance or not. Most lenders will require that you have your buildings insurance set up and ready to go by the date you exchange contracts with them. This is because the day that the contracts are exchanged is when you become legally responsible for the property.
Is Buildings Insurance a Legal Requirement? If you’re buying your property outright, there is no legal requirement for you to take out buildings insurance. However, this doesn’t mean it’s something you don’t need to consider whatsoever. Home repairs or, worst of all, rebuilds can be ludicrously expensive. If the worst does happen and your property does become significantly damaged, you’re likely to come off a lot happier if you have buildings insurance to cover your back. It is impossible to know beforehand, but in the long run, you may end up saving money by having a buildings insurance policy taken out. On top of this, many people benefit significantly from the peace of mind that comes with knowing you’re protected against worst-case scenarios that can otherwise leave people financially devastated at any moment.
Even if the property you’re considering insuring is not your home, you are still likely to share many of the same concerns while a tenant lives in your building. Landlords also regularly choose to take out buildings insurance since repairs to the property are still your responsibility, even if someone else is living there in most cases. If the properties you let were purchased with a mortgage, you’re also still likely to be bound by the same contractual obligations that lenders expect of others.
If it is just a flat that you own, the buildings’ insurance situation may be different. You will often find that the landlord of the building has already insured it, which will likely change your requirements from a buildings insurance policy if one would even be applicable at all. It’s always worth checking with the building landlord to know what your situation is and whether it’s worth arranging your cover.
What Does Buildings Insurance Cover? You may be wondering at this point about what exactly it is that buildings insurance covers. The previously mentioned things like floods, fires, and storms can cause physical damage to your property that most policies should cover you for, but there are other things you can be protected and covered for two. Burst pipes, subsidence and heave, may seem like the kind of things that only ever happen to that friend of a friend, but realistically it could affect you on any given day. No one likes it when they’ve underestimated risk, and it comes back to bite them. Being protected against things like this is a safe option to make long-term.
It’s not just bricks and mortar of the main section of the property you live in, either. You can also get protection if you have any concerns about your swimming pool, garden, or patio. These can all be expensive to repair if damaged and if they are, you’ll be a lot happier if you have a policy out that protects them too.
Perhaps the aspect that can come to be the most significant relief short term from a buildings insurance policy in a time of crisis is temporary accommodation provision. If something drastic happens to your house and you have to move out, sorting everything out and worrying about having to dish out somewhere else to stay can be tremendously stressful. The best insurance policies out there will be there to help provide you with temporary accommodation should anything happen to your property that makes it unliveable.
So, what other details are there to consider when choosing a buildings insurance policy that’s right for you?
You may already have experience with car insurance, as many people manage to get their hands on their car long before they can get one in their own home. No claims discounts, also known as NCD, are one thing that works the same way for both car insurance and buildings insurance. If you don’t make any claims on your buildings insurance for a prolonged period, often 12 months, then your insurance provider may appreciate the lack of hassle you give them.
They often show this by offering you reduced premiums. Since you are not asking them to fork out cash for you often, they can afford to cover you for a lower fee. However, your lack of claims in the short term won’t be the only thing that your provider will look at. Not claiming for 12 months or so is not the only factor taken into consideration, so you shouldn’t expect rock bottom prices after a year for that reason alone.
Buildings Insurance – To Conclude It’s also worth considering how often the property you’re considering insuring is occupied. Unoccupied properties are subject to slightly different rules than dynamic properties regarding buildings insurance. If you already own a property and it has recently gone from occupied to unoccupied, then it is always worth letting your insurance provider know. The chances are that your agreement will have specific terms and conditions which only come into place when the property ceases to be occupied. The period changes from policy to policy, but generally, after around 30 days, your policy is at risk of becoming invalid, which means that, should you need to make any claims, your insurance provider may refuse to payout.
It’s always worth checking the details when you can.
Find out more about the importance of insurance here .
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