A complete guide to building insurance

Building insurance can help cover costs if something goes wrong and your property is damaged. But although the core of building insurance policies broadly covers the same events, not all of them are adequate if your home is considered ‘non-standard’.

To help you find a policy that fits your needs (whether you’re a homeowner or landlord), we look at what to consider, common exclusions, and whether you need additional covers or policies to protect your assets.

Do I really need building insurance?

Building insurance is not a legal requirement, so there’s no law that says you must have it. However, if you have a mortgage, your lender may insist you have cover and make it a condition of the loan. The expectation is that a policy should be in place on the day you exchange contracts, when the sale is legally binding.

If you don’t have a policy in place and the property is damaged, you’ll be responsible for covering any repair costs. In the most extreme scenario, it could mean funding a complete rebuild of your property.

What does building insurance cover?

Policies cover the structure of your property and any permanent fixtures and fittings. The simplest way to think about it is if your home was turned upside down, the items that don’t fall out are covered.

Parts of your home that are typically covered include:

The structure – roof, walls, ceilings.
Permanent fixtures – fitted kitchens and bathroom suites, built-in wardrobes, fixed solar panels.
Fittings – pipes, drains, water tanks, central heating system, boiler, and radiators.
Outbuildings – garages, sheds.

If you have other facilities, such as a tennis court, swimming pool, or stables, these may not be automatically covered under a standard policy, so it’s important to double-check. If they aren’t, you can usually take out an extension to provide cover, but it’s also likely to increase what you pay (your premium).

What types of claims are covered?

Policies can vary between providers, so it’s important to read the policy terms before you purchase. Standard events that are generally covered include:

Fire – damage caused by fire, smoke, and explosions (such as a gas leak).
Storm and flood damage – for example, if hail or wind causes roof tiles to break or if your home is flooded. However, your policy may not cover storm damage to external features such as fences, gates, or sheds.
Subsidence, heave, and landslip – damage caused by the ground beneath your home shifting. If your home has experienced any of these in the past, it can increase your building insurance premium.
Escape of water – damage caused by burst pipes or leaks, or damage from water tanks.
Theft, vandalism, and impact damage – including damage caused by vandals (such as broken windows, doors, and graffiti) and theft of fittings and fixtures. Impact damage, for example if a car hit a wall, would also be covered.
Riots and civil disturbances – you’ll usually be covered if your home is physically damaged during a riot.

Why you might need specialist building insurance

Standard building insurance is designed for conventionally built properties made with typical materials, for example, brick walls, clay or concrete roof tiles, and concrete blocks.

If your home or property is not built with everyday building materials or you have unusual facilities, it’s likely to be classed as a ‘non-standard’ home. Similarly, if your home is unoccupied, you may need specialist or add-on insurance.

Homes that often fall into the non-standard category include:

High-value homes

If your home has a rebuild value of over £1 million or you keep valuable art, antiques, or jewellery, you may need high-net-worth home insurance. In these examples, standard home insurance is unlikely to cover the cost of repairing or rebuilding the property or your belongings.

Listed buildings and heritage properties

There is an expectation that listed buildings or buildings of historic interest should be conserved, and any repairs should use like-for-like materials. You may also need to consult with your local conservation officer before carrying out any repairs. Generally, this means employing specialist tradespeople and using traditional (often more expensive) materials like thatch, cob, wattle, and daub. For these types of properties, listed building insurance would be a more suitable policy.

Properties undergoing renovation

If you’re renovating your home, consider home renovation insurance, which can take away the worry if building work doesn’t go to plan. Policies with Alan Boswell Group offer flexibility to adapt to your needs, and can also provide cover if your home will be empty during the renovation.

Empty or unoccupied properties

Standard home insurance doesn’t usually cover properties that are empty for more than 30 or 60 consecutive days (depending on the policy terms). If you’re going on a long holiday or moving out while repairs are being done, you may need unoccupied property insurance instead.

What is typically not covered by building insurance?

Almost all insurance policies have exclusions (events not covered by the policy). Different insurers set their own terms, but common exclusions include:

Wear and tear – this is the gradual deterioration of an item due to age, neglect, rust, rot, or decay, for example, crumbling brickwork, mould from long-term damp, or disintegrating roof felt.
Lack of maintenance – any damage caused by neglect and failing to maintain the property. This could include blocked gutters causing water to enter the property or water damage caused by failure to repair loose roof tiles.
Faulty workmanship – damage caused by poor workmanship or defective materials, such as DIY plumbing resulting in a flood.
Gradual operating causes – this is a term specifically used by insurers. It means any damage caused over a long period, such as a slow leak that ends up damaging your ceilings. Under this condition, your claim may be rejected if you intentionally waited for the damage to increase in severity before claiming.
Damage caused by pests – damage caused by rodents, insects, or other pests generally isn’t covered. However, some home emergency policies cover pest removal but not the damage they cause.
Unoccupied properties – standard building insurance limits the period a property can be empty. Exceeding the limit risks invalidating your policy and your insurer can reject your claim. If you know your home is going to be vacant for a while, consider unoccupied property insurance.
Acts of war or terrorism – most policies exclude damage caused by such acts, but check your policy, as they vary by provider.
Contents – building insurance does not cover your belongings. To protect your contents (carpets, furniture, and personal items), you’ll need contents insurance instead.

Does building insurance cover roof repairs?

If your roof is damaged by an insured event, then yes, it will be covered by your policy. For example, you could make a claim for repairs if a storm or falling tree damaged your roof. Repairs won’t be covered if damage is caused by neglect or poor maintenance.

How to calculate your rebuild cost

Your home’s rebuild cost is how much it will cost to rebuild your home if it were completely destroyed. This should also take into account demolition costs, the cost to remove debris, fees for professional services, and the cost of alternative accommodation. Bear in mind that the rebuild cost isn’t the same as your home’s market value, which is the price it’s likely to sell for on the open market.

The rebuild cost is used as the basis of the sum insured on your building insurance policy. Therefore, it’s important this is correct, as otherwise you may be at risk of underinsuring your home, which can leave you severely out of pocket. For more information about underinsurance, read our in-depth guide to underinsurance.

The simplest way to work out a residential property’s rebuild cost is to use the Building Cost Information Service (BCIS), which is a free tool commissioned by the Association of British Insurers (ABI).

If your home is non-standard, you may need a more bespoke calculation which considers specialist construction materials and labour costs. If this is the case, your insurer may recommend a desktop survey or using a chartered surveyor.

Choosing building insurance

Your home is likely to be the most expensive item you purchase, so it’s important to protect it with comprehensive building insurance. When you’re searching for policies, remember to compare policy terms and conditions rather than be guided by price alone – cheaper policies may not provide the right cover for your property and risks.

Also think about any additional protection you might need, such as home emergency cover and contents cover, which can be added to your policy.

To find out more about how we can help you with tailored building insurance, speak to a member of the team by calling 01603 649650.

Do you need building insurance?

As we’ve seen, building insurance can be tailored to your property and individual requirements as a homeowner or landlord. Whether you need building insurance depends on your own circumstances; however, most mortgage providers will require you to take out building insurance, and without it, you could be left with a large repair bill if your property is damaged.

Speak to us: 01603 216399

A complete guide to building insurance

In this article

In this article

Do I really need building insurance?

What does building insurance cover?

What types of claims are covered?