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Personal General Insurance Buildings Insurance | Buildings Insurance |
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Buildings insurance policies differ in the cover they provide and in their terms and conditions. The information here is of a general nature - for detailed information you must read your policy. In addition to the structure, a buildings policy covers permanent fixtures and fittings such as baths and toilets, fitted kitchens and bedroom cupboards. Interior decorations are also covered. Policies usually extend to include outbuildings such as garages, greenhouses and garden sheds. Boundary walls, fences, gates, paths, drives and swimming pools may not be covered - you need to check the policy if you need cover for these areas. What am I insured for? Generally policies cover damage to your home by:
There are limits and exclusions to every policy so be sure you have read it. If there is an area of the policy you are unclear of then, contact your broker for clarification. Your policy is a legal contract and if there is anything you do not understand, then do ask for an explanation. One word you will come across is 'excess'. An excess is an amount of money you have to pay towards the cost of each claim. Excesses vary in amount. They may apply only to certain types of claim or they may apply to all claims. Your policy will tell you. One excess that appears in almost all policies applies to damage caused by subsidence, heave or landslip. This is usually a specific amount (for example £1,000). Common exclusions are war risks, damage caused by storm or flood to gates or fences, frost, sonic bangs and radioactive contamination from nuclear fuel or nuclear waste. Sum Insured The sum insured is the amount of money for which your home is covered. It is the most your insurers will pay under any circumstances. You must calculate an adequate sum insured to avoid claim payments being reduced because of under insurance. Regular checks should be made to ensure it remains correct. It is your responsibility to get the sum insured right. The sum insured under a buildings policy must be the full rebuilding cost of the home. Depending upon your property, and if it is considered of ‘non standard construction’, many insurers will have an “Average” clause in their policy to protect against insurance. What this means is that in the event of a claim, should your property be underinsured, then they will only pay a proportion of the claim. The market value of your home, or the Council Tax band valuation, will have no direct relationship to the rebuilding cost of your home. Index Linking You must make sure that the sum insured is kept up to date to allow for changing rebuilding costs. Many insurers help by 'index linking' your policy. This simply means that your sum insured is altered automatically whenever there is a change in the rebuilding cost. Usually there is no charge for any increase between renewal dates. Index linking can work properly only if your sum insured is right to start with. Then make sure you keep it up to date by telling your insurance company if you improve your home - perhaps by installing central heating or building an extension. Do not rely on index linking alone to keep your sum insured up to date. Review your cover every few years. Emergency Repairs Should your property be damaged, do what you can to stop the damage getting worse. Many policies cover the cost of temporary work. Some insurers provide emergency 'helplines' which will help you to find a competent tradesman who can carry out emergency repair work. Important The above is intended as a guide and should in no way be construed as definitive advice. You should always seek accredited professional advice before making any decisions regarding the information presented above. |
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