BUILDINGS INSURANCE

While you do not have to have buildings insurance by law, many mortgage lenders legally stipulate in their contracts that you have buildings insurance.  It makes sense as they are at risk if there is no house to repossess because it’s been knocked down by a juggernaut!

Remember, that even if you are not living in a property you are still liable for the damage, so from the moment you sign the contract to new house, you will legally be responsible to pay for any damage which occurs to your new property.  So it is a must to make sure that you have organised building insurance for your property prior to signing for your new home.

The total amount of cover that you take out ought to be enough to cover rebuilding the entire property that you live in.  It is important to note that this need not be the actual market value, as you should be able to rebuild your property at significantly less than the market value.

When you buy a house the surveyor gives two figures on the valuation the value and the “Re-build” or “Reinstatement Cost” It is this figure that the property should be insured for.

A good home insurer will be able to calculate this amount for you based on several factors such the property size, location, market value.  Listed buildings require a little more attention as do higher value properties and a professional valuation should always be obtained.

Given that the value of your property should increase with inflation year by year, so most insurance companies will index-link their cover in accordance, so that as your renew your policy each year the amount you insure your property for will increase.  If you feel that your property has risen in value significantly over a period of time given a general rise in house values within your area, it is essential that you increase the value of your buildings insurance to ensure that in the event that you would have to make a claim on your buildings insurance the policy you have matches the protection you home demands.

By taking out building insurance, you are able to protect what will probably be your greatest expense in life.  Building insurance will cover you against the possible damage and therefore loss of value in your property, which could cost you tens of thousands of pounds.

With a comprehensive buildings insurance policy, you can sleep at night with the assurance that your insurance provider will cover the cost of repair and even entire rebuilding of your property in the event of damage.

Finally do not assume that buildings insurance cover is designed only for major damage.  Broken windows, doors and interior fixtures and fittings can all be claimed on under you buildings insurance policy.