If you’re a homeowner or landlord, you’ll need building insurance to cover the cost of upgrading your home in case it’s damaged. Buildings insurance covers the costs of repairing damaged structures, such as garages, sheds, and fences. And if you’re purchasing a home using a mortgage, you might not get one except if you take out building cover. Here’s more about building insurance.
Building insurance in case of a mortgage
With a mortgage, you’ll need building insurance as a condition to cover the unpaid mortgage. You should have a choice of the insurer from your lender or select one yourself. Even if they refuse your insurer’s choice, they can’t force you to use their insurance policy unless your mortgage package contains insurance. When you purchase a property, ensure you take out building insurance after exchanging contracts. You’re responsible for taking care of your house if you plan to sell it till the sale is over. This will help keep your insurance covered until afterward.
- Without a mortgage
It’s not a must to have building insurance even if it’s insurance for church buildings, but it’s advisable. It’ll help you rebuild your home in case of damage or destruction.
- A leaseholder
Sometimes your lease may indicate you should have building insurance. Also, the building’s insurance should have a named insurer. If not, the freeholder may take out insurance, which may incur costs.
- A tenant
When damage occurs in your house, you may be liable for it, especially loss or damage to fittings. But the landlord usually takes out the insurance. Also, your home contents insurance may cover this.
Buildings insurance cover that you need
You should know the amount it will take to rebuild your home. This means you should insure yourself to know the complete cost of rebuilding your home. The money you used to buy your house isn’t equal to the money you’ll use in rebuilding it if you plan to sell it. Rebuilding costs are less compared to the present market value. For this reason, avoid over or under-insuring yourself.
If your insurer gives you unlimited protection, you won’t work out the rebuilding charges. It may be cost-effective to shop around for a policy that fits your needs. Some policies calculate the sum insured depending on where you live and the type and age of your house. This may not blend with your property, so you’ll need to check out whether you have enough coverage. Also, if you improve your home, rebuilding costs may skyrocket, so make sure you’re covered.
There are properties with special structures like thatched rooftops, or a listed structure. In such a case, you can pay for a survey from a reputable company to weigh the rebuild costs.
Conclusion
If you need extra building insurance, such as insurance for church buildings, it’ll cost you more. Also, you can add extra insurance for damage to boundary walls, fences, flooding, and gates. You may need to ask for expert advice on building insurance so that you know what to expect.
