Buildings Insurance: The Ultimate Guide to the Best Deals in March 2024
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
Vandalism and
Accidental damage.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here .
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Below is a useful table about popular insurance companies in the UK based on what they offer and their Trustpilot rating:
Buildings Insurance: What is it?
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 building’s 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.
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Buildings Insurance: Is it 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 Building Insurance Cover?
If you are asking yourself ‘what does building insurance cover?’ read on below to learn more!
Infrastructure
Building insurance protects the individual structures of a building that are put together to create a property. This includes the foundation, the flooring, the beams, the walls, the ceiling and the roof. Although powerful earthquakes are not very common in the UK, significant damage can still occur even though they are unpredictable. The property’s structure should be insured so that the insurer can cover the rebuild costs.
Furthermore, many properties are not made from fire-resistant materials. They could be damaged from even the most minor fires, resulting in substantial repair costs that the owner would likely not afford without assistance. The rebuilding costs are incredibly costly and most commonly range from £200,000 to £1 million, in contrast to the average building insurance premiums available for hundreds of pounds. Costs depend on the size of the building, the number of buildings insured, the property’s age, and the location.
2. Fixtures
The fixtures of a building are the systems or structures directly attached to the property intended to be a part of the building permanently.
Windows and doors are an essential part of a building, protecting the inside of the house from the outside world. However, they can easily be broken due to the delicate materials they are made from and stand no chance against fires or floods, which are powerful forces and can destroy them. Furthermore, windows are the first structures a thief would attempt to break to illegally enter the house, in addition to breaking the door.
As buildings insurance covers these, the insurance company would compensate the insured party for these expenses.
Radiators and boilers are also fixtures that are present in every home. Boilers can be susceptible, stop working in storms or freezing weather, and even explode next to a fire, which needs to be fixed immediately to allow heating and hot water in the house. The insurance company would cover the costs of replacing the boiler and ensuring that the heating system in the property is working effectively, allowing for the owner’s peace of mind.
Toilets and bathtubs are also permanent fixtures in a building. Unfortunately, toilets and bathtubs can crack easily due to the delicate materials they are made from, so heavy flooding may be enough to cause them damage. Depending on the building, the materials used may not be fire-proof and may not survive a fire or explosion. Through obtaining building insurance, the expenses of repair would be covered.
What Does Building Insurance Not Cover?
Similarly to contents insurance, building insurance does not cover ‘wear and tear’, a term used to define the eventual deterioration or its fittings. Over time, materials degrade, and the quality of structures like floors and walls decreases. Unfortunately, buildings insurance does not cover repairing these structures because they are not caused by a natural disaster like fire or flood. Hence, they cannot be held liable.
Accidental damage is usually not covered by most insurance companies as a cover within business insurance but instead is often offered as an additional policy. It is vital to research whether this is the case, as assuming that an insurer provides accidental coverage and filing a claim may result in this claim being rejected and insufficient insurance being obtained. Examples of this include:
Breaking a window when playing football inside.
Hammering too hard and putting a hole through the wall.
Clogging the kitchen sink with large particles of food.
Lastly, concerning landlords, building insurance does not cover unoccupied properties. For instance, if a property were not being rented because there were no prospective tenants interested, an insurance company would encourage you to obtain unoccupied property insurance. Without it, any damage sustained would be the landlord’s responsibility to fix, and the insurance company would not accept the claim.
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Other useful links about Business Insurance:
Kitchen Fitter Insurance
Landscape Architect Insurance
Labourers Insurance
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