What is buildings insurance and what does it cover?
Buildings insurance is a cover that can pay to rebuild or repair the structure of your property if it’s damaged or destroyed, including the cost of site clearance and architect's’ fees. It covers the physical structure of a property– such as walls, floors and roof – against damage, loss, and theft. Permanent fixtures and fittings within your home, including bathroom suites, fitted kitchens and built-in wardrobes as well as external structures – such as outbuildings, garages, garden sheds, boundary walls, fences, hedges, plants etc., are also covered by buildings insurance.
Buildings insurance can cover against damage caused by events such as fire, storms, or floods, as well as vandalism or subsidence.
Keep in mind that buildings insurance is usually required if you are buying you home through a mortgage lender.
The amount you insure your home for is the buildings sum insured. The buildings sum insured is the cost to rebuild your home and not the market value or the amount your paid for it. If your property is underinsured, you may not receive the full amount necessary to rebuild, repair or replace it in the event of partial or complete damage. Make sure you review the buildings sum insured each year.