UK
Buildings insurance provides cover for damage to the actual
structure and fittings of your home. It needs to be sufficient
to cover you in the event of total loss to your home. That is
the total rebuilding cost of your property if it had to be rebuilt
from scratch. Your rebuilding cost should not be confused your
properties market value. The rebuilding cost can be more or
less that your properties value if it was for sale.
Your
rebuilding cost is normally provided as part of your survey
when you buy a home. If you do not know what your rebuilding
costs are your insurer should be able to provide you with
a reasonably accurate estimate based on your properties age
and size. However if your home is a listed building or a particularly
valuable property, you should obtain a professional valuation.
The cover offered by your policy needs to keep up with inflation.
Most insurers index link their cover, so that it increases
in line with inflation. However it is worth checking your
insured value every few years to make sure it is adequate
to cover your property.
Your
cover allows you to claim the cost of repairs or the complete
rebuilding of your property should it be destroyed or rendered
uninhabitable. As part off your cover you should be provided
with alternative accommodation during this time. You can also
make claims for damage caused by perils such as flood and
even broken windows.
It
is important to properly insurer the structure and fittings
of your property. It is likely that your mortgage provider
has made it a requirement that you have adequate cover before
they will lend you the money to buy your home.
You house is likely to be your most expensive purchase. Given
how much you will spend on it it is crucial that it is properly
insurered in the event of unexepcted damage or loss. This
said your mortgage lender cannot force you to insurer your
home with them, although may try. There is no guarantee that
they will offer the cheapest rates. It is a highly competetive
market so it is well worth getting several quotes to make
sure you are getting the best deal available.
It is worth remembering that you need cover from the first
time you are responsible for your home which is normally the
moment that you exchange contracts on the purchase.
