What Does Buildings Insurance Cover

If you need to know the answer to the question, “What does buildings insurance cover?”  It is best if you understand the difference between the two main types of insurance that companies have to offer.  Building insurance only covers the cost of repair or replacement of your actual structure, and contents insurance covers the cost to repair or replace the items inside it.  Policies can be found together or separate, but owning your home means you will need some form of both types.  In addition to these two main types, people who own a building to be rented to tenants also need a third type: landlord insurance.  There are different levels of coverage from basic to total, and you can decide through a building insurance comparison online which plan is best for you.

So, what does buildings insurance cover in general?

Building insurance covers the structure itself, the property it is situated on, and any other structures that are on your property (such as sheds or garages).  Anything that is permanent on the property you own will generally be covered by such insurance, but it is good to remember that the things inside the structures generally are not unless specified by the policy writer. 

Most policies vary greatly depending on what you want to spend and what the company has to offer.  Some will combine both forms of insurance and also cover your possessions and belongings, but for the most part building insurance only covers the buildings and the property they are situated on.  Others will separate them, but have lower costs for both plans. 

In a natural disaster, what does buildings insurance cover?

In the event of a flood, tornado, hurricane, or other act of nature, your building insurance will cover the costs of most of the damages to the buildings and surrounding property.  It will also cover damage to other homes or property from pieces of your building causing damage.

In a fire, what does buildings insurance cover?

If there is a fire in your home, the insurance company will cover lodging for you and your family until your home is safe to live in again, as well as repairs.  Some may even pay medical bills for injuries sustained from the fire if you were in the home while the fire was burning.  If the insurance company decides the home is a total loss, they will then pay for a new home to be built for your family of equal value of the one you lived in before.

What does buildings insurance cover in case of theft?

The bad news is that normally, nothing is covered in case of theft with a standard buildings insurance plan.  Look into your own plan to make sure, but generally in the UK, a separate policy called contents insurance is needed to cover the items in your home, and building insurance only covers the physical property itself.  However, if your home was vandalized and damaged during the theft, your buildings insurance may cover the cost of those repairs.