You can’t put a price on feeling safe and protected in your home. Building insurance is probably one of the most important types of coverage that you’re likely to get out in your life.
It makes a lot of sense then to think carefully about which type of coverage best suits you and your family. To that end, here’s a quick guide to the basics of insuring your home.
What is Building Insurance
Building insurance is a form of coverage for your home. If your property needs particular repairs or to be rebuilt following damage, your building insurance will cover the cost of completing that work. The most common types of damage that building insurance covers include things like subsidence, fire and natural disaster damage (eg. by storms, earthquakes and floods etc.)
If you have a mortgage on a property, it’s compulsory to have a building insurance policy. If don’t have a mortgage, building insurance isn’t compulsory but it is strongly recommended: a good rule of thumb is that if you can’t cover the cost of rebuilding your home from scratch, you’ll need insurance.
Types of building insurance available
There are lots of different types of building insurance out there. The most basic forms of cover will just protect you for the value of rebuilding the physical structure of your home.
Other more comprehensive policies over contents insurance too, covering both the cost of rebuilding your home and the cost of replacing the possessions, furniture and appliances in it. These insurance policies obviously vary in price, depending on what your specific coverage needs are.
Usually the cost of rebuilding a home from scratch is slightly lower than what your property is worth on the market. This means you should take special care that the building insurance you get doesn’t over or under-insure the cost of rebuilding your home. If you over-insure, you could lose unnecessary money. If you under-insure, you could be find you can’t cover the cost of repairs in the case of an emergency.
Particular quirks of your property can increase the cost of insurance policies in some cases. Geographical risks such as flooding, being below sea level can increase the cost of building insurance, as can the risk of subsidence in your area. Having a heritage property that is listed or has a thatched roof can also increase the cost of your policy in some cases.
If you’re looking for building insurance, we can help. The Mortgage Hub are experts when it comes to providing the perfect insurance policy for your needs. Get in touch with our team today on 01698 200050 to find out how we can help you.
The Mortgage Hub is an independent mortgage advisor serving the greater Glasgow area. Whether you are planning to buy your very first home and need the right first time buyer mortgage, or are looking to re-mortgage due to a house move or to growing family – we understand your journey is so much more than a financial process, it’s a journey to achieve your dreams, improve your lifestyle and achieve your true potential.