Building Insurance Guide
This Building Insurance guide and the other pages on this website are intended to give you a high level understanding of some of the important points to consider when purchasing buildings insurance. Within our company we have extensive personal experience of managing residential let properties and we have tried to pass on the benefit of our experience through this website. This information is provided free of charge.
Please note that the information provided
here is of a general nature and you should refer to your buildings
insurance policy to confirm exactly what you are or are not covered
for.
What is covered?
A buildings insurance policy covers both
the structure of a property and its permanent fixtures and fittings.
Buildings Insurance also usually extends to include outbuildings
such as sheds, greenhouses, summer houses and garages in some cases
a buildings insurance policy may not cover paths, gates, fences,
drives, boundary walls and swimming pools.
What events are covered?
There are a number of events that
buildings insurance normally covers. These are referred to as
insured perils and most policies will cover loss damage to the
building by:
-
Storm or flood
-
Escape of water
-
Escape of oil from heating systems.
-
Subsidence, heave or landslip
-
Theft or attempted theft
-
Collision by aircraft, vehicles or animals
-
Falling trees or branches
-
Breakage or collapse of satellite dishes, tv or radio masts, lampposts and telegraph poles
-
Fire, smoke, explosion, lightning or earthquake
-
Malicious damage or vandals
-
Riot, civil commotion, strikes, labour or political disturbances
How much should
I insure my building for?
The sum insured is the maximum amount the
insurance company can payout in the event of a claim. It is
your responsibility to provide your insurance company with the
amount which you wish to insure your building for and that the "sum
insured" accurately reflects the re-building cost of your property.
If you under-insure your property the insurance company might reduce
the amounts paid on any claims or could reject a claim altogether.
If you are not sure of the re-build value
of your property the Royal Institute of Chartered Surveyors (RICS)
may help. Their online re-building cost calculator is
available at
http://calculator.bcis.co.uk
What excess will I have to pay?
The excess is the amount of money you
have to pay towards the cost of each and every claim. Excesses vary
in amount and discounts on premiums are often available if you are
happy with a higher excess. Most policies will a a general excess
but may also have a different access for certain peril like flood or
subsidence. It is not uncommon for subsidence to carry a
£1,000 excess or flood to have an excess of £500. These
excesses may also increase if your property falls in an area that is
prone to being effected by a particular peril.
What is not covered?
Things that are not covered in your policy are referred to as
exclusions. Exclusions can vary significantly from policy to
policy and it is important that you fully understand the significant
exclusions that apply to your policy. Most insurers provide a
summary of cover often called the "keyfacts" which highlight the
major exclusions, although you must always refer to the policy
wording to establish the full list of exclusions.
Websites:
Residential Landlords Insurance