A look at Buildings Insurance Cover and possible solutions from Shire Direct!
Buildings Insurance is designed to cover the cost of damage to the structure of your property.
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Below we explain Buildings Insurance Cover in greater detail, what it covers, how much you should insure your buildings for and how we may be able to assist!
Table of Contents:
What is Buildings Insurance and what does Buildings Insurance cover?
So, as we mentioned previously, Buildings Insurance is a form of Insurance designed to cover the cost of damage to the structure of your property, this includes the roof, walls, ceilings, floors, windows and doors. It also covers permanent fixtures and fittings, interior decoration, as well as pipes, cables and drains from your property to the main supply.
If your property is mortgaged, all lenders will insist you have adequate buildings insurance. Even if you own your property outright, without any borrowings, it is still very important that you insure your property.
How much should I insure my buildings for?
It is obviously very important that your buildings are covered for the full cost of rebuilding the property in the event of a total destruction. This will usually include the cost of demolition, clearing the site, and architects fees. You would generally not insure the land your home sits in, as land cannot be destroyed.
If you are buying or moving to a new home, or remortgaging your existing property, then the lender will have ascertained the "reinstatement cost" from the valuer's report.
What does Buildings Insurance cover?
When deciding the insurance provider, you should carefully examine the terms and conditions, and especially the limitations and exclusions of the policy cover.
As an indication, most buildings insurance usually covers loss or damage caused as a result of:
- Fire
- Explosion
- Bad weather (including storm, lightning, and flood damage)
- Malicious damage
- Theft (or attempted theft)
- Freezing or bursting of the plumbing system
- Subsidence
- Earthquakes
- Impact by vehicles and aircraft
Extra Buildings Insurance Cover
You can generally extend your Buildings Insurance policy to cover accidental damage at an additional cost. As a homeowner many policies will include the cost of alternative accommodation if you have to vacate the property whilst repairs are being carried out. Public liability is often an inbuilt feature of buildings insurance, and this covers death or injury to people visiting your property.
Other important features of Buildings Insurance
Some other important aspects and features of Buildings Insurance include:
Buying and Selling:
If you buy or sell a property, responsibility passes to the new owner at the time contracts are exchanged, because if the property is damaged you will be expected to cover the loss. If you are selling your house, you still have a legal responsibility to look after the property until the sale completes.
Repossession:
If you are subject to property repossession, you still have a legal obligation to maintain the buildings insurance cover until the property is sold. However, as you may no longer be residing in the property, you may not be covered. You should therefore advise the insurer of your circumstances in order that they make the appropriate amendments to the policy.
Utmost Good Faith:
This is the principle that all insurance contracts are based upon. It means that you should declare to the insurer all material facts regarding yourself and the matter to be insured. Not to do so may invalidate a subsequent claim. You should also remember that it is your responsibility to notify the insurer of any change in your circumstances, e.g. home improvements carried out.
When you may not be covered:
You may not be covered in the following instances.
- Normal wear and tear
- If you do not keep to the policy conditions
- Policy exclusions
- If you were underinsured
- If there is a limit on the amount you can claim
- If you have to pay an excess
Can Shire Direct help me with my Buildings Insurance?
Absolutely! As part of our fact-finding procedures, a qualified Shire Direct Mortgage Advisor will examine any present Buildings Insurance arrangements you may have, together with the level of the insurance protection you require. The Advisor will then make their recommendation accordingly in a statement of insurance demands and needs. We always aim to help in any way we can, so why not get in touch with us, we're only a Freephone call away on 08000 282 281, telephone lines are open everyday (including weekends) until 10pm, or you can contact us online anytime. We'd love to hear from you!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
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