Don’t let an unexpected event catch you unprepared

The low-down on buildings insurance

Essentially, buildings insurance is designed to cover the cost of repairing any damage to the structure of your home/property. Not only does buildings insurance cover the cost of rebuilding your property, but it may also include sheds, fences, garages and the costs of replacing pipes, cables and drains. It is often the case that an individual looking to get a mortgage must take out buildings insurance, but it does not always have to be provided by the mortgage provider – you can look around and see what options are currently available to you and your situation.

So, what is included in buildings insurance?

What is included

Events that are usually covered by buildings insurance include floods, storms and natural disasters like earthquakes. Similarly, theft (or attempted theft), vandalism, fallen objects (like trees, aerials or lampposts), collisions from aircrafts or vehicles and subsidence are also generally covered. It is easy to assume that such events are rare and will not happen to you, but some are much more common than one might think.

Fortunately, the UK is a very low-risk country with regards to natural disasters,[i] although some parts of the country can experience severe flooding and storms. It is believed that around 1 in 6 homes are at risk of flooding across England.[ii] Likewise, events such as house fires are far too common, with almost 27,000 dwelling fires having occurred in the year ending June 2022.[iii] So, clearly buildings insurance is a vital consideration when looking to purchase a property. Like any form of insurance, you should research thoroughly across the market to ensure you choose a policy that covers exactly what you need it to.

Choosing carefully

While some mortgage providers can reject your choice of insurer, they cannot force you to opt for the insurer they recommend.

With regards to the amount of cover you would require, you must insure yourself for however much it may cost to completely rebuild your property. This sum will not reflect the price you paid, or whatever amount it is currently valued at if you were to sell. Usually, the cost to rebuild will likely be less than the current market value, but there are, of course, many other costs to bear in mind, such as architect fees, demolition and site clearance costs. To more accurately estimate the sum you need to insure for, there are resources like online calculators that can help. You might find that certain insurers provide unlimited cover, doing away with the need to work out the costs yourself. However, if you do calculate the costs, you could research cheaper policies that still fit your needs and requirements.

There are various other considerations to bear in mind when choosing a provider, which may impact the cost of the policy. For example, the location and size of your property, in addition to whether it is a listed building with historical or special features. Plus, if you are thinking of making any changes to your property, like an extension, then this will influence the cost to rebuild and therefore you should ensure you will be covered. The costs associated with rebuilding can fluctuate over time so it is equally as important to review your buildings insurance cover regularly – you may find that some insurers will automatically increase the amount you are insured for if rebuild costs rise.

The right help when making the right choice for you

Finding the right insurer and policy for you is straightforward when you enlist the help from an Independent Financial Adviser (IFA), like money4dentists. They support you when finding the most appropriate cover for your individual situation, ensuring that you understand the fine print and exactly what you will be receiving from your policy. money4dentists provides peace of mind when you need it most.

Buying a home/property is a long and often stressful process, and so buildings insurance may not be high on your priority list. But it is important to take the time to thoroughly research policies on the market, choosing one that will provide adequate protection for your investment.

For more information call 0845 345 5060, email info@money4dentists.com or

visit www.money4dentists.com.

Richard T Lishman

Managing Director of the 4dentists Group of companies

[i] Harvard.edu. (2021). World Risk Report 2021. [online] Available at: https://repository.gheli.harvard.edu/repository/10930/ [Accessed 13 Jun. 2023].

[ii] Safesite Facilities. (n.d.). Areas Most at Risk of Flooding in the UK. [online] Available at: https://www.safesitefacilities.co.uk/knowledge-base/areas-most-at-risk-of-flooding-in-the-uk-2#:~:text=Areas%20of%20the%20UK%20particularly%20vulnerable%20to%20this [Accessed 13 Jun. 2023].

[iii] GOV.UK. (n.d.). Fire and rescue incident statistics: England, year ending June 2022. [online] Available at: https://www.gov.uk/government/statistics/fire-and-rescue-incident-statistics-england-year-ending-june-2022/fire-and-rescue-incident-statistics-england-year-ending-june-2022 [Accessed 13 Jun. 2023].