Building Insurance

Building Insurance

When the structure of your property has been damaged or your home has been lost to fire or natural disaster, isn’t it safe to say that having building insurance would make life a whole lot easier, especially when it comes time to repair or rebuild the property.

The costs to repair the damage or to reconstruct your property doesn’t need to be a financial burden, if you’ve taken out building insurance. Building insurance cover does differ so it’s important to know if you want to take out current market value insurance or fixed value insurance.

Unfortunately market value can rise or fall depending on the salable value of your property, and because of it’s unfixed nature your building insurance might fall short and this won’t cover the costs to rebuild your property.

By talking to a mortgage lender or insurance company they can discuss with benefits and risks involved depending on the type of  building insurance cover you take out. Taking out 100% insurance cover gives you the peace of mind that no matter if the damage is minor or major it will cover the full replacement costs.

This is why mortgage lenders insist on you having building insurance, because they want their loan to be secure and your asset to be protected. When a property is under threat by unforeseen circumstances your building insurance policy should cover loss and damages caused by natural disasters,  vehicle collision, theft, fire, smoke and more depending on your cover. In the event your home is severely damaged and you’re unable live there your insurance policy should cover you for alternative housing arrangements until the repairs are carried through.

When choosing building insurance try not to opt for the cheapest building insurance quote unless it meets all your needs. A good rule to follow is if it’s not in the quote then it won’t be covered in your building insurance policy.

If you don’t have time to look for competitive building insurance you can always try using an online price competitive tool to obtain a value for money quote. When reading through your quote make sure your insurance policy covers permanent fixtures, fittings, outbuildings, boundary fences, paving, swimming pool and the structure of the building.

Permanent fixtures and fittings that can be removed and reused in another home like cabinets and bathroom fixtures will added to your insurance cover. Outbuildings such as a garden shed, greenhouse, garage or carport are usually covered in a standard building insurance contract. Sometimes you might need to pay a little extra to protect your outdoor surroundings like the boundary walls, pathways, driveways and outdoor entertaining area from damage. All this information will be disclosed to you before you sign the building insurance policy.

In the event that you’re a tenant the landlord should provide you with their building insurance policy,  to take out contents insurance to protect your household contents and extras that might not be covered under their policy.

If you’re an existing homeowner or landlord it’s not a bad idea to review your building insurance cover in a years time to add to your insurance cover or switch to another insurance company due to lack of service or higher premiums. At the end of the day you need to feel satisfied that your building insurance policy is protecting your property from being damaged or destroyed.

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