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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
What Does Buildings Insurance Actually Cost?
Buildings insurance premiums depend on rebuild cost, location, flood/subsidence risk, construction type, and claims history. Indicative 2025 UK prices:
| Property type | Typical annual premium | Notes |
|---|---|---|
| 2-bed mid-terrace, low-risk postcode | £120–£200 | Standard construction |
| 3-bed semi, average postcode | £150–£280 | Typical family home |
| 4-bed detached, average postcode | £200–£400 | Depends on rebuild cost |
| Flat (if own policy needed) | £100–£200 | Many flats covered by freeholder policy |
| High flood-risk property | £500–£2,000+ | Flood Re scheme may help |
| Older/non-standard construction | £300–£800 | Thatched, listed buildings, timber frame |
Important: Your mortgage lender will require buildings insurance as a condition of the mortgage. You don’t have to use their recommended insurer — shopping around typically saves £50–£200 per year.
Getting the Rebuild Cost Right
The single most common buildings insurance mistake is insuring for the market value of your home rather than the rebuild cost. These are very different:
- A property worth £350,000 on the market might cost only £180,000 to rebuild
- Alternatively, some listed or period properties cost more to rebuild than their market value
- Insuring for the wrong amount leaves you either over-paying or facing a proportional shortfall in a claim (“averaging”)
To find the correct rebuild cost:
- Use the BCIS House Rebuilding Cost Calculator at abi.org.uk (free, industry-standard)
- Or commission a RICS surveyor’s reinstatement cost assessment
Flood Re: Help for High-Risk Properties
If you’ve struggled to get affordable buildings insurance because your property is in a flood risk area, the Flood Re scheme may help. Flood Re is a reinsurance scheme backed by the government and insurance industry:
- Your insurer can pass your flood risk to the Flood Re pool
- This means flood cover becomes available at a capped, affordable premium
- The scheme covers England, Scotland, Wales, and Northern Ireland
- Eligibility: Homes built before 1 January 2009 (newer builds are excluded as developers must account for flood risk)
Not all insurers use Flood Re — compare specifically using comparison sites that show flood cover separately.
What Counts as Subsidence?
Subsidence is one of the most expensive buildings insurance claims — and also one of the most excluded if you buy a property known to have subsidence movement. Understanding the difference:
- Subsidence: Ground beneath the foundations sinks, causing cracking, doors/windows sticking, sloping floors — usually caused by clay soils shrinking in drought, tree root damage, or leaking drains
- Settlement: Normal sinking of a new building into the ground — not caused by soil failure and not the same as subsidence
- Heave: Ground pushes upward — opposite of subsidence; usually caused by clay swelling or tree removal
If your surveyor found cracking or movement evidence when you bought the property, you must disclose this. Failure to disclose can void a later claim.
Making a Buildings Insurance Claim
| Step | What to Do | Notes |
|---|---|---|
| 1 | Stop further damage | Temporary repairs are allowed and usually covered |
| 2 | Document everything | Photos and video of all damage |
| 3 | Call your insurer | Report the claim as soon as possible |
| 4 | Loss adjuster visit | For large claims (£10k+), insurer sends an independent assessor |
| 5 | Get repair quotes | Insurer may have approved contractors or accept your own |
| 6 | Agree settlement | Insurer agrees repair cost or rebuilds value |
Keep receipts for all emergency spend. If the home is uninhabitable while repairs take place, most policies cover alternative accommodation costs.
Buildings Insurance for Non-Standard Construction
Standard buildings insurance is designed for brick-built homes with a tile or slate roof. If your property has non-standard features, you need a specialist policy:
| Feature | Special consideration |
|---|---|
| Thatched roof | Specialist insurer essential; fire risk significantly higher |
| Listed building | Rebuilding must use traditional materials — much more expensive |
| Timber frame | Not all insurers will cover; check explicitly |
| Flat roof | Often excluded or surcharged; check percentage of flat roof |
| Prefabricated (prefab) | Some types have specific issues; lenders may refuse mortgages |
| Properties over water | Specialist insurers only |
Related Guides
- Contents Insurance Guide — insuring your possessions
- Landlord Insurance Guide — if you’re a landlord, you need a specific policy
- Home Emergency Cover Guide — immediate repairs for boiler and plumbing emergencies
- First-Time Buyer Guide — what insurance you need when buying