Buildings Insurance UK: What It Covers, What It Excludes and How to Claim

What buildings insurance covers

Buildings insurance covers the permanent structure of your home: the external and internal walls, the roof, floors, ceilings, and the foundations. It also extends to permanent fixtures and fittings such as fitted kitchens, fitted wardrobes, fitted bathrooms, and the central heating system. In short, if you tipped the house upside down, almost everything that would not fall out is buildings cover.

Cover usually extends beyond the main house to permanent outbuildings, garages, garden walls, fences, gates, drives, paths and underground pipes and cables that serve the property. Most policies cover loss or damage from a defined list of insured perils: fire, smoke, explosion, storm, flood, escape of water from burst pipes, escape of oil, theft or attempted theft, malicious damage, falling trees or aerials, impact from vehicles or aircraft, and subsidence, heave and landslip.

Standard buildings policies typically include cover for alternative accommodation if your home is uninhabitable after an insured event, along with the professional fees and debris removal costs needed to put the structure right. Many also include accidental damage as a standard or optional extension, for example a foot through the loft ceiling or a nail through a hidden pipe.

What buildings insurance excludes

The most common exclusions reflect deterioration rather than sudden damage. Wear and tear, gradual deterioration, and lack of maintenance are not covered, because insurance responds to unexpected events, not the slow ageing of a building. A roof that leaks because tiles were never replaced is a maintenance issue, not an insured peril.

Damage caused while the property is left unoccupied for an extended period (often 30 or 60 consecutive days, as defined in the wording) may be excluded or restricted. Damp, rot, woodworm, frost damage to exterior pipes where you failed to take reasonable precautions, and storm damage to fences and gates are also commonly excluded or limited. Any damage that existed before the policy started will not be covered.

Some perils require an add-on. Accidental damage and home emergency cover are frequently optional, and high-risk locations may face a flood or subsidence exclusion or a raised excess. Always read the general exclusions and the specific conditions attaching to each peril before assuming you are covered.

Why the rebuild cost, not the market value, sets the sum insured

A frequent and costly mistake is insuring a home for its market value or purchase price. The sum insured for buildings cover should be the rebuild cost: what it would cost to demolish and reconstruct the property from scratch, including professional fees and debris clearance, but excluding the value of the land. The rebuild figure is often well below the sale price, though for some period or unusual properties it can be higher.

Under-insuring exposes you to the average clause: if the sum insured is materially below the true rebuild cost, the insurer can reduce a claim payout in proportion. Insure for half the real rebuild cost and a claim could be cut by half, even on a partial loss. This is why establishing an accurate rebuild figure matters before the policy is bound.

The Building Cost Information Service, run by the Royal Institution of Chartered Surveyors, publishes rebuild cost data used by many insurers, and a free online rebuild calculator based on that data is widely available. For non-standard, listed or large properties, a professional surveyor's assessment is the safer route.

Flooding, subsidence and high-risk perils

Flood cover has historically been hard to obtain or expensive in flood-prone areas. Flood Re is a reinsurance scheme backed by industry and government that helps insurers offer affordable flood cover on eligible homes built before 1 January 2009. The scheme operates in the background: you still buy a normal policy, but the flood element may be passed to Flood Re, helping keep premiums and excesses manageable.

Subsidence (downward movement of the ground beneath the foundations) is one of the most complex buildings claims. Policies cover it, but typically with a higher excess, and the insurer will usually commission monitoring and investigation before agreeing repairs, which can take many months. Properties on clay soil or near large trees face greater subsidence risk, which can affect both availability and price.

If a peril is excluded or heavily restricted, specialist insurers may still offer cover. It is rarely sensible to leave a known flood or subsidence risk uninsured, as a single event can run into tens of thousands of pounds.

How to make a buildings claim

Take immediate steps to prevent further damage, for example turning off the water supply after a burst pipe, but do not arrange permanent repairs until the insurer has authorised them. Photograph and document the damage, keep damaged items where safe to do so, and contact the insurer's claims line promptly, because late notification can prejudice a claim.

The insurer may appoint a loss adjuster to assess the damage and a network of approved contractors to carry out repairs. You can usually obtain your own quotes, and for larger or disputed claims you may appoint a loss assessor to act on your behalf, though that is a paid service distinct from the insurer's loss adjuster. Keep a clear record of all correspondence and costs.

If the claim is declined, underpaid or delayed unreasonably, raise a formal complaint with the insurer. Under the FCA's rules the firm must investigate and issue a final response, usually within eight weeks. If you remain dissatisfied, the Financial Ombudsman Service can review the dispute free of charge and its decisions are binding on the insurer if you accept them.

Frequently asked questions

Is buildings insurance a legal requirement?

No, it is not required by law. However, mortgage lenders almost always make it a condition of the loan, so most homeowners hold it. Outright owners can choose to go without, though doing so leaves the structure entirely at their own risk.

What is the difference between buildings and contents insurance?

Buildings insurance covers the structure and permanent fixtures such as fitted kitchens. Contents insurance covers movable possessions such as furniture, electronics and clothing. The two are often sold together but cover different things.

Should I insure my home for its market value?

No. You should insure for the rebuild cost, which excludes the land and is often lower than the market value. Under-insuring can lead to a proportionate reduction in any claim under the average clause.

Who is responsible for buildings insurance in a flat?

For most leasehold flats the freeholder or management company arranges buildings insurance for the whole block, and leaseholders contribute through the service charge. Leaseholders typically only need their own contents cover.

Does buildings insurance cover subsidence?

Yes, subsidence, heave and landslip are standard insured perils, but they usually carry a higher excess and the insurer will investigate before authorising repairs. Homes on clay soil or near trees face greater risk and may pay more.

What can I do if my claim is rejected?

Complain to the insurer in writing and ask for a final response. If you are still unhappy, refer the complaint to the Financial Ombudsman Service, which can review it for free and issue a decision that binds the insurer if you accept it.