Buildings insurance covers the actual physical structure of your house in case the worst happens and you need to repair or even rebuild. It can offer a lifeline at a time when your world is literally falling down around your ears.
Why you need It
Building insurance will theoretically pay for the reconstruction of your house from scratch if it falls down. While this is unlikely to happen in practice, the protection will also usually cover repair costs if your house is damaged. A house is generally the most expensive purchase you will make in your life, which means insurance premiums may seem high. However, the high purchase price means it is probably a good idea to protect your own investment with some form of building insurance.
Legal requirements
Many mortgage providers require that you have buildings insurance before they will lend you the money. However, remember you are generally under no obligation to take insurance from them and may be able to find it cheaper elsewhere. Furthermore, if you do choose to take your mortgage provider's cover, you may still be able to get a lower building insurance quote by having a private assessment of your house.
What it covers
Building insurance usually covers the rebuild cost of your home - the amount you would have to pay a builder to construct your house from scratch if it fell down.
While this may sound like the worst-case scenario, in practice it often works out cheaper than the market value of your home, as issues such as location need not be taken into account.
Tip: A survey will tell you exactly how much your house should be insured for, which may save you a substantial sum.
To compare home insurance from the UK's leading insurers click here.
Author: KYM Editor
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