What building insurance covers: A complete guide

This guide breaks down what you can expect from a standard buildings insurance policy, from structural damage to unexpected events like leaks and subsidence.

We'll also explain how buildings insurance differs from contents insurance and help you understand if you need a policy.

What is buildings insurance?

Buildings insurance is cover for the structure of your home. That includes the walls, roof, floors, and permanent fixtures like kitchens and bathrooms.

Buildings cover protects against damage from events like fire, floods, storms and subsidence.

This type of insurance is different from contents insurance, which covers the belongings inside your home. Buildings and contents insurance are oten sold together though, as part of a single combined home insurance policy.

Do you need buildings insurance?

Buildings insurance is usually a requirement of mortgage lenders, but it's not a legal requirement for those who own their home outright. It is highly recommended though, as a way to protect the significant investment that is your home.

For tenants, the responsibility for buildings insurance lies with the landlord.

If you're a leaseholder, the freeholder is generally responsible for insuring the building, and they might charge you for this as part of your service charge. You have the right to ask for a summary of the policy and challenge the cost if you think it's unreasonable.

What does a standard buildings insurance policy cover?

A typical buildings insurance policy covers:

• Damage from fire, lightning, explosions, and smoke.

• Storm and flood damage.

• Damage from falling trees or aerials.

• Theft, vandalism, and attempted theft.

• Damage from burst pipes or water leaks.

• Cover for subsidence, heave and landslip.

Does buildings insurance cover leaks and water damage?

Yes, but only damage caused by the leak.

It won't cover the repair of the pipe or the source of the leak itself. The only exception would be if trace and access cover is included in your policy. This pays for the cost of locating and accessing the source of a leak from your home's fixed water or heating systems.

Water damage might come from roof leaks, bathroom leaks, and water supply pipes. A pipe that bursts, often during freezing weather, is a classic example of a sudden and accidental leak that is typically covered.

A leak from a shower, particularly one caused by faulty seals or grout, can also be claimed, though repeated failure due to wear and tear may not be covered.

Does buildings insurance cover subsidence?

Most standard policies do cover subsidence, but there's typically a high excess. This is because subsidence claims are often complex and require and investigation by the insurer.

Subsidence refers to the gradual sinking or settling of the ground, which can damage properties as the foundations are pulled down with it. Clay soils are particularly vulnerable as they shrink and crack in dry weather, and expand when wet. Poorly constructed foundations for extensions or other structures can also cause a building to sink.

Always check your policy details carefully and be honest about any previous issues when getting a quote.

What about accidental damage cover?

Accidental damage is a sudden and unexpected event, such as putting your foot through the ceiling.

It's often an optional add-on available for an extra cost. A typical accidental damage claim might be drilling into a pipe by mistake, or accidentally smashing a window.

It's worth checking your policy documents carefully to understand any exclusions. Pet damage, for example, is not typically included in accidental damage cover. Neither is wear and tear.

What isn't covered by buildings insurance?

The following are not typically covered by buildings insurance:

• General wear and tear and gradual damage from lack of maintenance

• Damage caused by pets, insects or vermin

• Damage to fences, gates and plants from storms

Your insurer will also typically exclude unoccupied properties. If your home is unoccupied for along period, usually around 30 to 60 days, you may not be covered unless a specific unoccupied property policy is in place. This is because an empty home is more vulnerable to damage from things like vandalism, theft, and undetected leaks from burst pipes.

You must tell your insurer immediately if your home will be vacant for more than 30-60 days. Otherwise you risk having your policy void. You will likely need to purchase a separate unoccupied property insurance policy.

How much buildings insurance do you need?

The amount of buildings insurance you'll need depends on the rebuild cost of the property, not its market value. The rebuild cost refers to the overall cost to demolish and rebuild the property from scratch, including the materials and labour.

To work out the rebuild cost, you can use the ABI rebuild cost calculator, or you can refer to your mortgage valuation if you have one. You can also hire a surveyor for an exact cost.

It's also worth noting that some insurers offer blanket cover up to a high limit, for example £1 million. This is a single, high policy limit that covers multiple types of properties, such as a main home and outbuildings, or even multiple properties, under one umbrella.

What about buildings insurance for new builds?

New builds still need buildings insurance, as the developer's warranty (for example, the National House Building Council, NHBC) only covers major structural defects. This means that accidental damage, fire or flood isn't covered.

It's always best to arrange cover from the date you exchange contracts. This ensures you're covered from the very start should anything go wrong.

What's the difference between home insurance and buildings insurance?

Home insurance is the umbrella term that refers to either or both types of cover.

The following table compares standalone buildings insurance with a combined home insurance policy: