General Insurance

WHAT BUILDINGS INSURANCE COVERS?

Buildings insurance will protect the structure of your home, but not its contents When insuring your home, you normally need two policies: one for the building itself and another for its contents (see our contents insurance reviews). Buildings insurance covers the structure of your home (walls, windows, roof etc) as well as permanent fixtures and fittings (such as baths, toilets and fitted kitchens). See our for Which? Recommended Providers and Claims Satisfaction results. It generally covers damage due to fire, lightning, explosion or earthquake, theft (or attempted theft), riots or vandalism, storms or flooding, subsidence, falling trees, moving objects (such as a car hitting your home) and escaping or leaking water or oil. If you have a mortgage, your lender will insist you take out buildings insurance. If you’re a tenant, it’s down to your landlord to arrange it. In other cases, buildings insurance is not compulsory, but you’d be unwise to do without it.

INCLUSIONS

Flooding

Currently, there’s an agreement between the government and insurers that insurers will continue to offer cover to existing customers living in areas at high risk of flooding so long as the government commits sufficient money towards maintaining and improving flood defences. The agreement has just been extended in advance of a new arrangement, called Flood Re, launched in 2016.

Subsidence

Damage to your property due to subsidence is usually covered, although there’s often a larger excess (the first amount of any claim you have to meet) for this type of claim – normally £1,000 or more according to the ABI (https://www.abi.org.uk/). However, buildings policies usually only cover subsidence damage to the house itself. Patios, garden walls, driveways and swimming pools aren’t usually covered, unless your house is damaged at the same time. Storm damage to gates, fences and boundary walls is normally not covered either.

Accidental damage

Accidental damage cover on a buildings insurance policy protects against damage you cause to your building or fixtures and fittings. Standard policies include some limited cover, for example for accidental damage to glass in doors, windows and skylights, and damage to bathroom fittings such as baths and sinks.

COST OF INSURANCE COVER

The cost of cover (the premium) will be determined by the risk category your insurer places your house into. The risk category in turn will depend on a number of factors, but the most important one is the likelihood of subsidence. It also depends on the types of claim made in your area, and the chance of storm damage and flooding. With a sum-insured policy, cost also depends on the replacement value of your home. A bedroom-rated policy does not require you to calculate this. However, you cannot always tell which type would be cheaper for you, so get some quotes for each type if you can. Most policies have a standard excess (the first slice of any claim that is not covered) – for example, a £1,000 excess for claims relating to subsidence. You can often get a reduction in the premium (ranging from 15-50%) if you voluntarily agree to a larger excess. Some policies have a no claims discount (up to a maximum 10-40% depending on the company), so your premium falls in subsequent years if you have not made any claim. You usually pay extra if you pay by monthly instalments rather than a single annual premium. A few companies give a 5-25% discount if you buy over the internet.


A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it