Buildings insurance is very important if you own your own property, without it if something happened and your home is damaged then the costs of repair - or in the worst case, rebuilding - will lie with you. Buildings insurance will normally cover all items that are fixed parts of the property, however check your policy first to see exactly what is covered as it can vary from provider to provider. A buildings insurance policy will normally cover:
- Storm damage
- Damage from flooding
- Fire damage; including smoke
- Damage by a third party; i.e. criminal activity
Do I have to have buildings insurance?
Most of you considering buying a property with a mortgage will find that having a buildings insurance policy is part of the mortgage lenders terms, plus you may well have your mortgage provider "push" you in the direction of one of their own insurance policies. Don't feel obliged to go with the same provider, shop around and see what the best deals that suit you are.
If you are a tenant and you are renting your home then buildings insurance should have been taken out by your landlord - the property owner - and should not be required. As a tenant all you need to worry about is a good contents insurance policy to cover your personal possessions. If you have bought a flat leasehold then buildings insurance is normally taken out by the freeholder and is generally covered in the ground rent.