Buildings Insurance Explained
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How much buildings insurance cover do I need? The sum insured is the amount of money for which your home is covered and is the most an buildings insurance insurer will pay even if your home is burnt to the ground. It is also the amount it would cost to rebuild your home though that is not the same as your home's market value, which could be greater or less. How much buildings insurance cover I need? The sum insured is the amount of money for which your home is covered and is the most an buildings insurance insurer will pay even if your home is burn't to the ground. It is also the amount it would cost to rebuild your home though that is not the same as your home's market value, which could be greater or less. How do I know the cover I have is adequate? Adequate buildings insurance is a condition of a loan being granted by a bank, building society or the other mortgage lender. A chartered surveyor, who is a member of the Royal Institution of Chartered Surveyors, will prepare a professional rebuilding cost assessment for buildings insurance purposes. You may work out your own sum assured though the calculations are rather complicated. The Association of British Insurers has a useful leaflet that includes tables to help you. Write to ABI, 51 Gresham Street, London EC2V 7HQ. Some insurance companies offers unlimited cover. This means you do not have to worry about how much cover you need or whether it is adequate. Other insurers offers premiums based on a simple assessment of where you live and the type, age and size of your property. Do buildings insurance policies contain exclusions? Yes. It is essential you find out what these are before you buy your policy. Common exclusions are storm damage to gates or fences, frost damage, and structural damage caused by sonic bangs from aircraft. Buildings insurance does not cover wear and tear so if your property is not in a good state of repair a claim may not be paid in full. Your insurer may apply restrictions if your home is not lived in more than 30 days. What about excesses? Do these apply to building insurance? Yes. Most insurers insist you meet the first part of any claim. The level of excess depend on under which section of the policy you are claimining, but it is typically between £50 and £100. However, in the case of subsidence claims that excess can be as much as £1,500. |