A burst pipe can damage far more than a kitchen cupboard. It can affect plaster, flooring, wiring and the parts of your home that make it safe to live in. Buildings insurance is designed for those larger, structural costs, helping you repair or rebuild your property following an insured event.
For homeowners, arranging cover is often a condition of the mortgage. Yet it should not be treated as a box-ticking exercise. The right policy depends on the property, how it is occupied and the level of risk you are comfortable carrying yourself.
What is buildings insurance?
Buildings insurance covers the physical structure of your property and its permanent fixtures. This typically includes the roof, walls, windows, doors, floors, fitted kitchens, bathrooms, pipes and wiring. Garages, sheds, gates and boundary walls may also be included, although policy limits can apply.
It is different from contents insurance, which protects the belongings you would take with you if you moved house, such as furniture, clothing, televisions and laptops. You can buy the two covers together, but they serve different purposes. A damaged fitted kitchen is usually a buildings claim; the contents of its cupboards would usually fall under contents insurance.
Most policies are designed to cover sudden and unexpected events rather than wear and tear. A roof damaged by a storm may be covered, for example, while gradual deterioration caused by poor maintenance is unlikely to be.
What does buildings insurance usually cover?
Policies vary, so the policy wording always matters. However, standard buildings cover commonly includes damage caused by fire, smoke, storms, flooding, escape of water, theft or attempted theft, malicious damage and impact from vehicles or falling trees.
It may also help with the cost of alternative accommodation if your home cannot be lived in following an insured event. This is particularly valuable after a major fire or flood, when repairs can take longer than expected. The amount available and the circumstances in which it applies will differ between insurers.
Cover that may need to be added
Some useful features are not always included as standard. Accidental damage can cover mishaps such as drilling through a concealed pipe. Legal expenses cover may help with certain disputes, while home emergency cover can provide a contribution towards urgent call-out costs for issues such as a failed boiler, blocked drain or loss of heating.
These additions can be worthwhile, but only if they meet a genuine need. Home emergency cover, for instance, is not a replacement for buildings insurance or routine maintenance. It often has call-out limits, exclusions and rules about using approved tradespeople.
Your rebuild cost matters more than the sale price
One of the most common areas of confusion is the amount a property should be insured for. Buildings insurance should generally reflect the rebuild cost, not its market value or the size of your mortgage.
The rebuild cost is the estimated amount required to demolish, clear and rebuild the home to a similar standard after a total loss. It can include professional fees and may be higher or lower than the price you paid for the property. A home in an area with high property prices is not automatically expensive to rebuild, while a period property with specialist materials may cost considerably more than expected.
For many conventional homes, insurers use property details such as location, construction type and number of bedrooms to calculate an appropriate limit. If your property is listed, unusually constructed, significantly extended or has specialist features, a more detailed assessment may be sensible. A surveyor can provide a rebuild-cost assessment where there is uncertainty.
Underinsuring is a risk worth taking seriously. Depending on the policy terms, an insurer may reduce a claim if the declared rebuild value was materially too low. Equally, setting an unnecessarily high figure does not mean you receive more than the cost of the loss, and it may increase your premium.
When your mortgage lender has a say
If you have a mortgage, your lender will normally require buildings insurance to be in place from exchange of contracts. This is because the property is security for the loan, and serious damage could affect its value.
The lender does not usually require you to buy insurance from a particular provider. It will, however, expect the policy to meet certain conditions, such as covering the full rebuild value and noting the lender’s interest where required. Your solicitor or conveyancer will usually confirm the practical arrangements during the purchase process.
For a remortgage, it is still worth reviewing existing cover rather than allowing it to roll over automatically. Your circumstances may have changed since you first arranged the policy. An extension, renovation, new outbuilding or change in how the property is used can all affect what you need to declare.
Flats, rental properties and unoccupied homes
The person responsible for arranging cover is not always the person living in the property. If you own a flat on a leasehold basis, the freeholder or managing agent may arrange buildings insurance for the whole block and recover the cost through the service charge. Check your lease and request the policy details, rather than assuming you need separate cover for the structure.
Landlords generally need landlord buildings insurance for a rental property. This may include features more suited to letting, such as landlord liability, loss of rent following insured damage and cover for certain tenant-related risks. Standard owner-occupier cover may not be valid if the insurer has not been told the property is let.
If your home will be empty for an extended period, tell the insurer before you go. Many policies restrict cover after the home has been unoccupied for a set number of days, often around 30 or 60, although the exact period varies. Insurers may ask for regular inspections, the water supply to be turned off, or other precautions to reduce the chance of escape-of-water damage.
Look beyond the headline premium
A lower premium can be appealing, particularly alongside the cost of moving home or refinancing. However, price alone does not show how a policy will perform when you need it. Start by checking the level of rebuild cover, the compulsory and voluntary excess, and whether the excess rises for claims involving subsidence, flood or escape of water.
Then consider exclusions that are relevant to your property. Previous flooding, subsidence history, non-standard construction, a thatched roof, business use from home or planned building work can all affect availability and terms. Answer questions accurately and disclose relevant information. A policy based on incomplete details may create problems at claim stage.
Also check how claims are managed. Some insurers appoint their own contractors, while others may give more flexibility once a claim is agreed. Neither approach is automatically better. What matters is understanding the process, the policy limits and what evidence you may need if something goes wrong.
Buildings insurance questions homeowners often ask
Do I need buildings insurance if I own my home outright?
There is no lender requirement when you have no mortgage, but the financial risk remains yours. If a fire, flood or major storm caused extensive damage, could you afford the repair or rebuild cost without insurance? For most homeowners, buildings cover remains a practical form of protection.
Does buildings insurance cover a leaking roof?
It depends on why the roof is leaking. Sudden storm damage may be covered, subject to the policy terms and excess. Gradual wear, missing maintenance or a long-standing defect is usually excluded. Insurers may pay for resulting internal damage in some circumstances but not the cost of fixing the underlying worn roof.
Will making a claim increase my premium?
It can. A claim may affect your renewal price and any no-claims discount, particularly where there is an increased risk of another claim. That does not mean you should avoid claiming for substantial damage, but it is sensible to weigh a small repair against the excess and potential impact on future premiums.
A home is often the biggest financial commitment a household makes. Taking time to check the rebuild value, understand the exclusions and choose cover that fits the property can prevent a difficult event becoming a financial setback. If you are arranging a mortgage, moving home or reviewing existing protection, CoG Financial can help you consider the cover alongside the wider financial decisions you are making.