In the UK, a Buildings Insurance policy covers the structure of your home, its decorations and the fixtures and fittings attached to it against damage caused by insured events such as fire, lighting, explosion, earthquake, subsidence, theft, storm, flood, etc. It covers the full or partial rebuilding of your home and the replacement of fixtures and fittings.
When deciding on the sum to be insured, allow for the full rebuilding cost of your home. This is not the same as the purchase price or a recent valuation. The sum insured is the maximum the insurance provider can pay you for damage to your building.
The market is very competitive, so obtain several quotes and compare policies.
Points to Watch: Once you have decided on the sum to be insured, check if the sum is index-linked to changes in rebuilding costs, as "under insuring" may result in your claim being reduced or even refused. Read policy documents carefully for cover extensions and exclusions. They spell out what risks are covered and what are not and specify benefits such as covering the cost of emergency and alternative accommodation, legal expenses, architect fees, etc.
For peace of mind, choose an insurance provider with good market standing and a reputation for handling claims smoothly and quickly.
