Buildings insurance can cover the financial costs in the event of damage to physical property. It usually covers damage to permanent fixtures and fittings too.
Who needs buildings insurance?
Buildings insurance should be considered if you are:
- owner of a commercial property that you use yourself or rent out to a business
- owner of a residential property that you live in or rent out to tenants
Mortgage companies generally include buildings insurance as a condition of lending, so not having this type of insurance or similar cover in place could put your property at risk.
If you are a landlord who owns a number of premises, be they residential premises, shops or other commercial businesses, it is your responsibility to ensure that you are covered and not your tenants.
If you are a homeowner, make sure you are taking out residential buildings cover instead of commercial buildings cover.
If you are a tenant renting a commercial property, you may not need this type of cover, but it is always best to check with your landlord to ensure that the right protection is in place.
What does buildings insurance cover?
Buildings insurance should cover everything that is considered to be a permanent part of the property. This can include the roof, walls, ceilings, doors and windows, and permanent fixtures, including kitchen and bathroom fittings. The specific cover included will be dependent on your provider and requirements. Cover can include:
- Cover against flood, fire and accidental damage
- Replacement of windows and doors and boarding up
- Accidental damage to pipes and underground cables
- Replacement locks
- Any damage to the building and its permanent fixtures and fittings
- External lighting, alarms, surveillance systems and fire extinguishers
How much does buildings insurance cost?
The cost of buildings insurance will vary depending on the extent of cover required, the size of the building, any claims history and what the property is used for.
When taking out buildings cover, you need to ensure that your property is fully protected to its total rebuild cost. These costs will need to reflect the builder’s costs, debris removal, materials and architects’ and surveyors’ fees. Your cover should be reviewed regularly to make sure any increases in rebuild costs are reflected. Some providers will do this automatically. Failure to have sufficient cover in place could be a catastrophic (and expensive) mistake if you do need to make a claim.
Does The Retail Mutual offer buildings insurance?
The Retail Mutual offers an alternative to insurance. If you own a retail business, food business, hair salon or barbershop, or you rent out your commercial space to business tenants; we can provide buildings cover as part of our business cover. This also provides access to other cover types you might need, such as stock and contents, employers’ liability and public liability.
If you are looking for buildings cover for a residential property that you rent out to tenants, this would be offered as part of our landlord cover.
If you are looking for buildings cover for your home, this would be offered as part of our home cover.