Buildings Insurance is compulsory when you take out a mortgage. It covers the cost of repairing damage to the structure and permanent fixtures and fittings of your home.
As a rule of thumb, your Building Insurance should cover the full cost of rebuilding your home from the ground up should there be loss or damage caused by:
- Fire, explosion, storms, floods, earthquakes
- Theft, attempted theft and vandalism
- Frozen and burst pipes
- Fallen trees, lampposts, aerials or satellite dishes
- Vehicle or aircraft collisions
Depending on the type of policy you choose, you may also be covered for structures around your home like garages, sheds and fences.
Buildings Insurance also includes cover for your roof, walls and windows. AS well as bathroom and kitchen fittings.
In essence, it covers you for anything from a roof leak to totally rebuilding your home.
If you have a mortgage
All mortgage conditions state your Buildings Insurance should be at least enough to cover the outstanding balance of your mortgage.
Lenders require buildings insurance to be in place from completion. But, at Mortgage Confidence, we advise you to have it from exchange. This is the point at which you are legally obliged to complete on the purchase of your new property and you can’t be certain it’s currently ensured by the seller. So better safe than sorry!
If you don’t have a mortgage
If you own your property outright, Buildings Insurance isn’t compulsory – but it is advisable. You’d need to think seriously about how you would afford to rebuild your home if it were damaged or destroyed.
Homeowners often combine Buildings Insurance with Contents Insurance – which protects their belongs from loss, theft of damage.
Here at Mortgage Confidence, we provide our Building Insurance policies through PaymentShield. This is one of the UK’s leading insurance administrators and distributors. Plus, any insurances you buy will be 5-star defaqto-rated – which means it’s the best product available for you and your circumstances.