If you have a mortgage, your lender will normally insist that your property is protected by buildings insurance. It usually pays out if your property is affected by fire, floods or subsidence (although you will need to check the area where you live).
Policies often cover damage to fixed fittings such as baths and kitchens, as well as garages, sheds and greenhouses, although they may exclude walls, fences, drives and swimming pools.
If you live on a flood plain you may find it difficult to get buildings insurance.
If you already have cover for flood damage, the insurer should continue to offer it to you, although they may increase your premiums, the excess, or both. You can see the Environment Agency’s website to find out if your property is at risk of flooding.
You might be offered buildings insurance by your mortgage provider when you take out your mortgage, but you don’t have to take what’s on offer – you can shop around.
If you buy a leasehold property (such as a flat in a block of flats), the freeholder may have arranged buildings insurance for the whole block, in which case you may not need your own buildings policy.
Your cover is based on what your home would cost to rebuild. You can check whether you have enough buildings insurance through the Building Cost Information Service’s (BCIS) website
It has an online tool to help you calculate the sum you should insure your building(s) for, in case your home has to be entirely rebuilt. You need to tell your insurer if you extend your property, for example with a loft conversion or conservatory.
Buildings insurance does not cover your belongings. These need to be insured separately with contents insurance.
You may find that you get a better deal if you buy buildings and contents insurance together from the same insurer. Combined buildings and contents insurance is often known as household insurance.
