What Does Building Insurance Cover?
Building insurance is designed to protect the insured party from the financial loss they could suffer from, should any damage to their building be sustained. It is a popular type of insurance for landlords, businesses, and homeowners. It can insure any property against the events covered in the policy, depending on the insurance company. Usually, this includes fires, floods, storms and vandalism. However, every insurance should cover some general aspects of a building, and they are crucial to look out for.
What Does Building Insurance Cover?
If you are asking yourself ‘what does building insurance cover?’ read on below to learn more!
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.
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.
What Does Building Insurance Cover? To Conclude
so what does building insurance cover? In conclusion, buildings insurance is very cost-effective when comparing the rebuilding costs with the annual premiums. The insurance is comprehensive and covers a range of skyscrapers, from the architecture to the fittings, so it should be considered by landlords or business owners.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Is Professional Indemnity Insurance a Legal Requirement?
How Much Product Liability Insurance Do I Need?
Is Employers’ Liability Insurance a Legal Requirement?
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