Buildings insurance is a type of insurance that covers the structure of a building and any permanent fixtures and fittings, such as kitchens and bathrooms. It is typically required by mortgage lenders as a condition of a mortgage loan, as the lender has a financial interest in the property.
Buildings insurance covers a wide range of risks, including damage caused by fires, storms, floods, and other natural disasters. It can also cover the cost of repairing or rebuilding the structure if it is damaged or destroyed.
The premium for buildings insurance is typically based on the value of the property, as well as the level of coverage desired. It is important to note that buildings insurance does not cover the personal possessions or valuables of the occupants, which are typically covered under a separate policy called contents insurance.
Buildings insurance is an important consideration for homeowners, as it can provide financial protection in the event of damage to the property. It is also an important consideration for mortgage lenders, as it helps to ensure that the property is adequately protected and that the lender’s investment is secure.
If you have a mortgage on your home, your lender will insist that you have buildings insurance in place. Even if you own your home outright, buildings insurance can give you peace of mind knowing that you are covered in the event of any damage to your property.
