What is Buildings Insurance Cover

Building insurance is fairly self explanatory; in a standard policy it covers the structure of the building. That means the floor, the walls, the doors the windows, the ceiling and anything that is an integral part of the structure of the building. In most standard building insurance policies the content insurance is excluded. It can apply to both commercial and home insurance. Roughly speaking it is all the things in a building that would not be taken out in the normal usage of the building.

The level of coverage depends on your individual insurance cover policy. Some policies cover everything that is on the property including the outside wall and gates, as well as outhouses and sheds. Building insurance is the base insurance and it is usually combined with contents insurance which cover anything that can be safely moved, the carpets, the furniture etc.

Building insurance will cover you in most cases for fire and natural disasters.

A natural disaster is something like a hurricane, a flood, a freak wind, a tornado or twister something that often happens in nature. In general insurance will insure for any property that may result to your building and any damage that your structure can cause to other buildings. For instance if your building is flooded and this results in residual damage to other property then you are covered by insurance for the building.

In the case of domestic building insurance and fire damage the building part of the insurance policy will cover relocation for your family until the house is repaired again. Some policies will even insure for medical bills incurred during the fire. Sometimes fires totally destroy buildings and although a building insurance policy cannot bring back your house and possessions it does soften the blow by paying for a house of the same value to be built again.

Insurance companies are businesses designed to run at a profit and you cannot state the cost of rebuilding your own property, which is normally done by professional surveyors.  They will also make a note of any extra high quality fittings that have been installed.

A surveyors report is actually beneficial to both parties as it prevents underinsurance and establishes the correct band for the insurance premium. In practice this is a double protection for the consumer because the insurance company cannot overcharge for your policy and equally you have the peace of mind that your building insurance policy is fully comprehensive. Once the correct value has been established for your property, that figure is then indexed linked. Once your structural insurance is index linked the value increases annually to keep up with rising building costs because it is linked to inflation levels.

The variables surveyor’s considers when assessing the value of your property

• The location

The location of your building will indicate the level of risk for certain factors for instance the level of crime will be more important in some areas than others and certain geographical areas are more prone to specific types of natural disaster.

• The type and use of the building

Is it a commercial property or a private dwelling? Structural insurance can apply to commercial and private properties. Private properties may be more at risk during the day if they are empty, and commercial properties are more at risk at night.

• The theft factor

Houses in the center of the City will be surrounded by people for most of the day, but large detached houses in their own grounds, with driveways and gates may offer a level of s seclusion for burglars. Equally having adequate security arrangements, such as added cameras will reduce the price of building insurance.

• Discount and The age of the customer.

Older customers are sometimes offered a substantial discount for building insurance by some insurance companies, because statistically they are less likely to carry out while activities that may damage the property.

• Who occupies the property?

If you live in your own property then building insurance will be cheaper than if you are renting your property to someone else.

It is normal for surveyors to make certain recommendations to both parties once they have completed the survey. They may ask for an increased level of security these suggestions may be specific such as a bigger alarm or more security cameras. The purpose of this is not to increase the price of your building insurance but to make the prospect of insuring your building more acceptable to the underwriters of the level of security breaches a standard.