When it comes to safeguarding your home, buildings insurance is a vital component of your financial protection plan. This article dives deep into the world of buildings insurance in 2023, helping you understand what it is, what it covers, and how to find the best policies available.
What Is Buildings Insurance?
Buildings insurance is designed to cover the cost of repairing damages to the structure of your property. It typically includes coverage for the walls, windows, roof, and permanent fixtures and fittings, such as baths, toilets, and fitted kitchens. In essence, it provides protection for the essential components of your home.
Best Buildings Insurance Policies
Understanding the best buildings insurance policies is crucial for homeowners. We’ve analyzed 75 buildings insurance policies and identified top picks based on various factors. Let’s take a look at some of the best insurance policies available in 2023:
Best Buy: NatWest Premier Home Insurance
- Buildings Score: 86%
- Alternative Accommodation: ★★★★★
- Trace and Access: ★★★★☆
- Repairs Guarantee: ★★☆☆☆
Best Buy: Royal Bank of Scotland Premier Home Insurance
- Buildings Score: 86%
- Alternative Accommodation: ★★★★★
- Trace and Access: ★★★★☆
- Repairs Guarantee: ★★☆☆☆
Best Buy: NatWest Elite Home Insurance
- Buildings Score: 80%
- Alternative Accommodation: ★★★☆☆
- Trace and Access: ★★★★☆
- Repairs Guarantee: ★★★☆☆
Best Buy: Royal Bank of Scotland Elite Home Insurance
- Buildings Score: 80%
- Alternative Accommodation: ★★★☆☆
- Trace and Access: ★★★★☆
- Repairs Guarantee: ★★★☆☆
Direct Line Home Insurance Plus
- Buildings Score: 79%
- Alternative Accommodation: ★★★☆☆
- Trace and Access: ★★★★☆
- Repairs Guarantee: ★★★☆☆
AXA Premier
- Buildings Score: 78%
- Alternative Accommodation: ★★★★☆
- Trace and Access: ★★★☆☆
- Repairs Guarantee: ★★★★★
Bank of Scotland Select: Gold
- Buildings Score: 78%
- Alternative Accommodation: ★★★★☆
- Trace and Access: ★★★☆☆
- Repairs Guarantee: ★★★☆☆
Please note that the table was last updated in March 2023, and the next update is scheduled for September 2024. The buildings score is based on our experts’ rating of the insurance policy, and you can find more information about our methodology below.
Do I Need Buildings Insurance?
If you are a homeowner or renting out a property you own, it’s highly advisable to have buildings insurance in place. In fact, if you’re using a mortgage to purchase your property, your lender typically requires you to have buildings insurance from the date of exchange to secure the mortgage.
Even if you do not have a mortgage, it’s still prudent to have buildings insurance. Consider the potential cost of rebuilding your home if it were to suffer significant damage or destruction. In cases where you live in a block of flats, the entire building may have insurance covered by your service charge, eliminating the need for individual buildings insurance.
For those who are renting a property, the responsibility for having buildings insurance rests with the landlord. However, if you wish to protect your belongings, it’s wise to consider a contents insurance policy.
What Does Buildings Insurance Cover?
Buildings insurance provides coverage for nearly everything you would leave behind when moving to a new home. It includes the essential structural components of your property, such as walls, windows, the roof, and permanent fixtures like baths, toilets, and fitted kitchens.
As a rule of thumb, buildings insurance covers the cost of rebuilding your house from the ground up. This amount may differ from the market value of your home and often includes expenses like demolition, site clearance, and architect’s fees.
Buildings insurance typically covers the cost of loss or damage caused by various factors, including:
- Fire, smoke, explosions
- Floods, storms, and natural disasters
- Damage caused by fallen trees, lamp posts, aerials, or satellite dishes
- Vandalism or malicious damage
- Subsidence
- Collisions with vehicles or aircraft
Depending on the type of policy you select, you may also receive coverage for structures around your home, such as garages, outside walls, and driveways.
More on Buildings Insurance
As you delve deeper into the world of buildings insurance, you may have specific questions and concerns. Here are some common questions and topics related to buildings insurance:
These topics cover a wide range of concerns related to buildings insurance, helping you make informed decisions about your coverage.
How We Analyze Buildings Insurance
Our approach to analyzing buildings insurance policies involves comprehensive assessment and rating. Here’s how we evaluate and score policies:
Buildings Policy Score
Our buildings policy score results from the overall evaluation of insurance policies. In December 2022, we surveyed 37 insurance companies, assessing 40 elements of contents cover, 21 elements of buildings cover, and 25 features that apply to both, such as administrative fees. The policy score reflects the overall quality of the policy. Higher scores indicate more comprehensive coverage.
Certain elements are weighted to reflect their importance in the policy score. We assign scores based on the general level of significance we attribute to each element.
Which? Best Buys
Our “Best Buy” badge recognizes individual products that excel in our analysis. It takes into account the comprehensiveness of the coverage but does not reflect customer service. To earn a “Best Buy” designation, a policy must achieve a minimum policy score of 74%.
We also consider how consistently good the coverage is in policies. To qualify as a “Best Buy,” a policy should score at least three out of five points in two-thirds of the areas we have rated. Additionally, all Best Buy buildings policies must meet specific minimum coverage levels, such as flood, storm, subsidence, accidental damage cover, and more.
In the end, our goal is to provide you with clear insights into the best buildings insurance policies available in the market.
With this comprehensive guide, you can make informed decisions about your buildings
insurance needs and find the policy that offers you the best protection in 2023.
Conclusion
Securing your home with the right buildings insurance is a crucial step in protecting your investment. With various top-rated policies available, you have the flexibility to choose the one that best suits your needs. Whether you’re a homeowner or renting, understanding the coverage and having your questions answered can make all the difference in providing peace of mind.
Have more questions about buildings insurance? Explore our FAQs below for further insights.
FAQs
- Is buildings insurance the same as home insurance?
- No, buildings insurance specifically covers the structural components of your property, while home insurance typically includes both buildings and contents insurance.
- Is buildings insurance affected if my home is unoccupied?
- Some insurance policies may have clauses regarding unoccupied homes. It’s essential to check with your insurer for specific details.
- Does buildings insurance cover accidental damage?
- Building insurance may offer coverage for accidental damage, but the extent of coverage can vary between policies. Review your policy to understand its terms.
- Do homebuyers need buildings insurance when exchanging contracts?
- Yes, when exchanging contracts for a home purchase, you typically need to have buildings insurance in place from that date to satisfy mortgage requirements.
- What does “Best Buy” mean in buildings insurance?
- The “Best Buy” designation is given to insurance policies that provide comprehensive coverage based on our analysis. It does not directly assess customer service but emphasizes the quality of coverage.