What is buildings insurance?

Buildings insurance covers the cost of repairing or rebuilding the structure of your home if it is damaged by events like fire, flood, storms, subsidence, or burst pipes. It covers the walls, roof, floors, ceilings, windows, doors, fitted kitchen, bathroom, and permanent fixtures. It is usually a condition of your mortgage.

How much buildings insurance do I need?

You need enough to cover the full rebuild cost of your home — not its market value or purchase price. The rebuild cost is typically much lower than the market value because it doesn't include the land value. You can find an estimated rebuild cost on your property's most recent survey or calculate it using the BCIS rebuild cost calculator.

Is buildings insurance a legal requirement?

Buildings insurance is not legally required, but it is almost always a condition of your mortgage — your lender will require it. If you own your home outright, it is not compulsory but is strongly recommended. For leasehold properties, buildings insurance is usually arranged by the freeholder and paid through the service charge.

Buildings Insurance Guide UK — Protect Your Home's Structure | PocketWise

Buildings insurance is the most fundamental form of home protection — covering the physical structure of your property against damage. For homeowners with a mortgage, it is a requirement. For all homeowners, it is essential protection against potentially devastating financial loss.

What Buildings Insurance Covers

Covered	Examples
Fire	Accidental fire, smoke damage
Flood	River flooding, surface water
Storm	Wind damage, falling trees
Burst pipes	Water damage from plumbing failures
Subsidence	Ground movement, heave, landslip
Theft/vandalism	Damage from break-ins
Falling objects	Satellite dishes, aircraft debris
Impact	Vehicle hitting your property
Escape of water	Leaking pipes or tanks

What Is Included in “the Building”

Included	Not Included
Walls, roof, floors, ceilings	Furniture and belongings (contents insurance)
Windows and doors	Garden furniture
Permanent fixtures (fitted kitchen, bathroom)	Portable appliances
Built-in wardrobes	Clothing and personal items
Driveways and paths	Sheds/outbuildings (often optional extra)
Garages (attached or detached)	—
Fences, gates, walls	—
Plumbing, wiring, central heating	—

How Much Does It Cost?

Property Type	Typical Annual Premium
Flat	£100–£200
Terraced house	£150–£300
Semi-detached house	£150–£350
Detached house	£200–£450
Large/period property	£300–£700+

Factors Affecting Price

Factor	Impact
Location (flood risk, crime rate)	High impact
Property age and construction type	High impact
Rebuild cost	Directly affects cover level
Claims history	Previous claims increase premiums
Excess amount	Higher excess = lower premium
Subsidence history	Significant increase if present

Getting the Rebuild Cost Right

The rebuild cost is the amount it would cost to completely rebuild your home from scratch — not the market value.

Method	How
Property survey	Your surveyor’s report includes a rebuild estimate
BCIS calculator	Online tool from the Building Cost Information Service (bcis.co.uk)
RICS rebuild calculator	Free online calculator
Professional valuation	Chartered surveyor assessment

Example

Property	Market Value	Rebuild Cost
3-bed semi, Midlands	£250,000	£180,000
2-bed flat, London	£400,000	£150,000
4-bed detached, South East	£500,000	£300,000

Under-insuring means a claim may not pay out in full. Over-insuring means paying for cover you do not need.

Common Exclusions

Exclusion	Detail
Wear and tear	Gradual deterioration is maintenance, not insurance
Lack of maintenance	Damage caused by neglecting your property
Deliberate damage	By you or family members
Specific perils (optional)	Flood and subsidence cover may be excluded in high-risk areas
Unoccupied property	Often excluded if empty 30–60+ days

Making a Claim

Step	Action
1	Prevent further damage (e.g. turn off water, board up windows)
2	Call your insurer as soon as possible
3	Document everything — photos, videos, receipts
4	Get emergency repairs if needed (keep receipts)
5	Wait for the loss adjuster (for larger claims)
6	Provide quotes for repair work
7	Claim settled — insurer pays or arranges repairs

Buildings Insurance for Leaseholders

Arrangement	Detail
Who arranges it	Usually the freeholder or management company
Who pays	Leaseholders, through the service charge
Your role	Check the policy covers your flat adequately
Can you arrange your own?	Usually not — it’s typically a shared policy

Saving Money

Increase your excess — the first £250–£500 you pay per claim
Pay annually — usually cheaper than monthly
Shop around — compare at renewal (do not auto-renew without checking)
Combine with contents — home insurance bundles often save 10–20%
Improve security — burglar alarms, locks, and CCTV can reduce premiums
No-claims discount — some insurers offer this for buildings insurance

For complete home protection, see our contents insurance guide and landlord insurance guide.