Building Insurance covers loss or damage to the actual structure of your home, the Building itself. While Contents insurance covers the loss of your possessions it will not cover the, generally, higher value of your property. Your home needs separate cover and this is known as Buildings Insurance.

The amount of insurance you arrange should be enough to cover the total rebuilding of the premises. The rebuilding cost of a building is not the same as its market value. Depending upon the type of property the rebuilding cost could be more or less than the property valuation were it for sale.

If your house is destroyed or rendered uninhabitable, you can claim the cost to rebuild or carry out the necessary repairs. The insurance cover normally provides you with alternative accommodation whilst the rebuilding work is undertaken. You can make smaller claims on your policy for damage caused by less destructive events such as floods, smoke damage, or even broken windows.

Other areas that may be covered are:

• Subsidence of the foundations of your home
• Damage by falling objects – trees, aerials, parts of aircraft
• Collision damage – if someone drives into your home
• Burst pipes, tanks, damaged boilers
• Damage caused during a civil riot.

In some areas, the policy may exclude certain events. Damage caused by terrorism, for example, may not be available in all policies. These exclusions can vary from policy to policy and between the various Insurance Companies. It is always worth checking the policy details, so that you know those risks you do not have insurance against.

Building Insurance may also include outbuildings such as sheds or garages. Likewise, the policy may cover any legal costs arising from damage to your home.

It is unlikely that Buildings insurance would cover the cost of repairing your property against problems caused by normal wear and tear. You cannot normally make a claim to have the roof repaired simply because it has become old and has started to leak. However you might be able to claim if a tree or other object was to fall upon it, and this caused the roof to leak.

Most mortgage lenders make it a requirement of your mortgage advance that you effect a Building insurance policy to protect the building from damage. They do not insist you buy the policy from them.

Many lenders offer their own insurance policy at the time you take out the mortgage. There is no guarantee that they offer the cheapest rates so you should always consider finding a cheaper alternative.

You should always ensure that there is proper insurance in place from the point that you first become responsible for the premises, even if this is before moving in.