What is Buildings Insurance
Buildings Insurance normally covers the main structure, outbuildings, walls, gates and the property owner's fixtures & fittings. The level of cover can vary greatly between different insurance policies, with some policies actually covering very little.
A common mistake when insuring a building is to insure the cost of its market value rather than the cost of rebuilding the property. Most buildings insurance policies are written on a reinstatement basis, which means the building should be insured for its rebuilding cost, including debris removal costs and professionals' fees. Therefore the insurance value and market value may differ greatly. Consideration in valuation will need to be given to construction, listing, location, etc. Alternatively you may wish to insure your building on a first loss or indemnity basis, which we would be happy to discuss with you.
Most modern policies cover 'all risks' which means everything will be covered, except listed exclusions. Common exclusions include subsidence and terrorism, which you may have to request. If your property is high risk, such as unoccupied, then the insurer may restrict cover to 'named perils', such as fire, lightening, earthquake and explosion.
If you are the occupant of the building then the building can normally be insured as part of a package, commercial combined or household policy. If you are the landlord and do not occupy the property it may be better covered by a specific property owners policy, which will enable you to add property owners liability, contents and loss of rent.
If you are the landlord and there are items such as lifts, pressure boilers and gas fittings you may be required to prove serviceability with regular certified inspections. If you are a management committee you should also consider trustees liability.
If you are a tenant and have made additions to the building then you will require tenants improvements insurance.
If you simply own a plot of land, perhaps with a building not worth insuring, you should consider taking stand alone property owners liability insurance to protect you should you be accused of negligence if someone is injured on your land.
For impartial advice on Buildings insurance please contact us or call 01905 21681.
Act now! Call us on 01905 21681 to get your insurance needs met