Buildings insurance – what does a good policy

look like?

Having trouble figuring out which features to look out for in a buildings insurance policy?
Check out this list of ‘must have’, ‘should have’ and ‘could have’ features to help you buy the
right buildings insurance policy.

‘Must have’ features

‘Must have’ features A good policy will give

Fixed limits of £250,000 or higher, or let you
choose your own limit
Sum insured – this must be enough money to clear the site and
If the sum insured isn’t enough to rebuild your
rebuild your home if it was totally destroyed by fire or flood, for
home then your insurance company might not
example.
pay the full amount of any claim you make,
even if it’s for partial damage.
Index-linked sum insured – the cost of rebuilding houses rises
A sufficiently high enough sum to be insured
each year with inflation. Protecting, or index-linking your sum
to cover the cost of rebuilding the property
insured means you won’t be left underinsured.
Alternative accommodation – covers the cost of staying
somewhere else (like a hotel or rented house) while your house is
£40,000 or 20% of the sum insured
being repaired if you can’t live in it following major damage like
a fire or flood.
Public liability – covers you for the costs of being sued if anyone
dies or is injured, or their property is damaged, because of £2,000,000
something which happens at your home.

‘Should have’ features

‘Should have’ features A good policy will give

Cover for glass and sanitaryware at no extra cost
Glass & sanitaryware breakage – cover for replacing The cost of replacing matching suites isn’t normally
windows, glass in doors, toilets and washbasins, if they are covered – if your toilet was broken the insurer would
broken accidentally. replace it, but not the bath and sink if they weren’t
broken too.
Underground services – cover for the underground pipes Some very basic cover for accidental damage at no
and cables bringing water, gas and electricity to your home extra cost
and sewage away from your home. However this is usually limited to specific items like
a TV and will usually exclude most other contents in
your home.

Accidental damage due to wear and tear, other

 ‘Should have’ features
Blockage of sewer pipe – cover for the cost of clearing a £1,000 of cover both for finding and clearing the
blockage in a sewer pipe on your property.
Burst pipes – cover for the cost of repairing burst pipes
(this is not the same as cover for damage by the leaking
water).
Tracing and accessing a leak – help with the cost of
finding a leak and fixing it if it happens in your house, or outside the home
underground.
Empty property – how long you can leave your home
unoccupied (such as going away on a long holiday or for
work) before your insurer restricts or removes cover for
your buildings.
Emergency helpline – an emergency number you can ring
in the event of damage that needs to be fixed as quickly as
possible.
A good policy will give
contents in your home and sometimes damage due to
DIY or building work are usually covered as an
optional add on.
blockage
Blockage due to the pipe collapsing, or tree roots
pushing into the sewer might not be covered.
Damage to burst pipes covered as standard
Many policies won’t cover pipes that just leak
because they are old and corroded.
£5,000 of cover as standard for leaks inside and
Often the cost of finding and getting to the leak is
covered, but the cost of repairing the pipe itself will
not be covered.
Periods of 30 days or longer without having to
notify the insurer
Your insurer might insist that you turn off the water
and drain the central heating system if you are going
to be away for some time.
24-hour helpline with approved repairers
Often you will have to pay the tradesmen who come
to carry out emergency repairs, then claim the costs
back from your insurer.

‘Could have’ features

‘Could have’ features A good policy will give

Accidental damage cover – covers you Cover as standard or available as an option
against the cost of any accidents that damage Damage caused by your pets or by building work might not be
your home. covered.
Loss or theft of keys cover – if you lose your Cover as standard
keys or have them stolen your insurer will pay Some insurers will only pay for this if you lose all sets of keys, or
to replace all the locks in your home. if the person who stole them knows where you live.
£50,000 of cover as standard
Legal expenses cover – cover for your
The insurers will not pay any legal costs that they have not agreed
personal legal expenses if you have problems
in advance and will usually only progress on the basis of how
such as employment disputes, bodily injury
likely they believe your claim will be successful. Your legal
claims, etc.
expenses claim will be controlled by the insurer’s lawyers.
Legal helpline service – a helpline you can A free helpline as standard
call for advice if you have a personal legal Some insurers only provide a legal helpline if you also buy their
problem. legal expenses cover.
A 12-month guarantee
Repairs guarantee – any repairs to your
Repairs carried out by someone you choose to do the work won’t
buildings will be guaranteed.
usually be covered.

Things to watch out for

Things to watch out for A good policy will give

Buildings excess – an amount of money you
have to pay towards any claim.
Accidental damage excess – if you have
Excesses in the range £0 to £100
Insurers often let you choose how much to pay towards claims,
in return for a lower premium. If you choose a higher excess you
will have to pay more for every claim. Also consider additional
excesses on your policy like subsidence which can be around
£1000.
No extra excess
 Things to watch out for A good policy will give
accidental damage cover this is an extra excess
you have to pay towards these sorts of claims.
Escape of water excess – if your house is
No extra excess
damaged by leaking water or baths and sinks
Some insurers will not cover damage by overflowing baths or
overflowing, you might have to pay a higher
water damage because of poor seals around baths or showers.
excess towards the claim than the normal excess.