What does building insurance cover?

Buildings insurance is necessary to ensure you are covered if something unexpected happens to cause damage to your home. This can include storm, flood or fire damage repairs or the cost to rebuild a home if it is substantially damaged. In addition to covering the structure, meaning the walls, roof and windows, it also includes permanent fixtures and fittings such as bathrooms and kitchens.

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The right cover

The Association of British Insurers says it is essential to set the amount for which you are insured correctly, as it will be the maximum an insurer pays out on a claim. Rather than the property’s market value or what you paid for it, you should be insured for what it would cost to rebuild.

If you are planning on getting building work done, it is worth checking you have the right level of cover while it is being carried out. Your builder may be able to offer advice, as they will have their own insurance, which may cover issues such as structural damage and financial issues, including liquidation. If you are looking for renovation work from building companies Bristol, firms such as Mogford Prescott can offer guidance as to what insurance you may require.

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Do you need it?

Homeowners who have a mortgage will have buildings insurance as a pre-condition of the loan, and it has to be of a level deemed appropriate by the lender. The policy is taken out once contracts are exchanged. If you own but don’t have a mortgage, you will still likely want to cover yourself. If you rent your home, the landlord should have a policy. Leaseholders should check the terms of their lease, as the freeholder may charge them for a policy or may insist that you take it out with a named insurer.

Author: Brielle Walker

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