What Is Buildings Insurance and Why It Matters
When you own a property, buildings insurance protects the structure of your home — from the walls and roof to permanent fixtures like kitchens, pipes, and bathrooms. It's your safety net if disasters strike.
For example, if a storm damages your roof or a fire destroys your kitchen, buildings insurance covers the rebuild or repair costs. Without it, homeowners could face bills of tens or even hundreds of thousands of pounds.
Buildings vs. Contents Insurance
Buildings Insurance
Covers the structure and permanent fixtures of your property.
Contents Insurance
Covers your belongings (furniture, electronics, clothing).
Expert Tip
Most homeowners buy them together for complete protection.
Who Needs Buildings Insurance
- Homeowners: Required by most mortgage lenders
- Landlords: To protect rental property structures
- Commercial Owners: To safeguard offices, shops, or industrial units
Why You Should Compare Buildings Insurance Policies
Comparing policies isn't just about saving money—it's about understanding what's actually covered. Two policies might both cost £200/year but offer very different protection.
Key Benefits of Comparing
Better Value
Find the same coverage at a lower cost.
Custom Coverage
Tailor add-ons like accidental damage.
Peace of Mind
Know your insurer pays out fairly and promptly.
Hidden Policy Gaps to Watch Out For
- • Some exclude subsidence or storm damage in flood-prone areas
- • Others may cap rebuild costs below what's realistic
- • Always check the excess (the amount you pay when claiming)
What Buildings Insurance Typically Covers
| Event | Coverage Description | Typical Limit |
|---|---|---|
| Fire, Lightning & Explosion | Rebuild or repair cost | Up to full rebuild value |
| Flood & Storm Damage | Structural and water damage | May vary by postcode |
| Theft & Vandalism | Forced entry damage | Up to rebuild cost |
| Subsidence & Heave | Ground movement repairs | Often capped |
| Burst Pipes & Water Leaks | Repairs to structure | £5,000–£10,000 typical |
| Falling Trees or Impact | Roof, wall, or window damage | Up to rebuild cost |
Optional Add-Ons
Accidental Damage
For unintentional breakages
Home Emergency
Plumbing, heating, locksmith
Legal Expenses
Boundary or tenant disputes
How to Compare Buildings Insurance Like a Pro
Identify Your Rebuild Cost
Your rebuild cost is different from your market value—it's the amount needed to rebuild your home from scratch.
Use RICS' Rebuild Cost Calculator, your mortgage surveyor's report, or online insurer tools.
Compare Policy Excess
A higher excess lowers your premium—but raises your out-of-pocket cost during claims. Strike a balance.
Look Beyond Price
Cheap isn't always best. Compare:
- • Rebuild limit
- • Exclusions
- • Customer service and claims reviews
Check Claims Handling
Research average claim processing times and payout ratios. A slightly higher premium can mean faster and fairer settlements.
Check for Multi-Policy Discounts
Bundling with contents insurance or car insurance often saves 10–20%.
Common Mistakes When Comparing Policies
❌ Underestimating Rebuild Costs
Leading to underinsurance and reduced payouts.
❌ Ignoring Exclusions
Missing out on flood or subsidence cover when you need it most.
❌ Choosing the Cheapest Option
Without checking claim reliability or coverage depth.
❌ Failing to Review Annually
Missing renewal discounts or necessary coverage updates.
How to Use Comparison Websites Effectively
Sites like CompareTheMarket, GoCompare, and MoneySuperMarket make it easy—but only if your information is accurate.
Tips for Getting Accurate Quotes
- Use your correct postcode and building type
- Enter realistic rebuild cost estimates
- Add optional cover if you live in older or listed buildings
- Check if the quote includes accidental damage or flood cover
Case Study – Emma Saves 22% by Comparing Smartly
Emma owned a 3-bedroom semi-detached house in Manchester. Her renewal quote was £260/year. After comparing three insurers:
Insurer A: £260/year (renewal quote)
Insurer B: £215/year (similar coverage)
Insurer C: £204/year with better flood cover
She switched to Insurer C, saving 22% and gaining higher rebuild protection.
Annual savings: £56 | Total saved over 5 years: £280
Quick Checklist Before You Buy
- Check your rebuild cost using RICS calculator
- Review exclusions and policy limits carefully
- Compare at least 3–5 quotes from different providers
- Read the claims reviews and customer ratings
- Ask about multi-policy bundle discounts
Compare Buildings Insurance Providers
| Provider | Avg. Annual Cost | Notable Feature | Customer Rating |
|---|---|---|---|
| Aviva | £210 | Strong claims support | ★★★★☆ |
| Direct Line | £225 | Custom add-ons | ★★★★☆ |
| LV= | £230 | Good multi-policy discounts | ★★★★★ |
| Halifax | £205 | Fast online claims | ★★★★☆ |
(Prices illustrative; always check current rates.)
FAQs About Comparing Buildings Insurance
What's the average cost of buildings insurance in the UK?
Usually between £180–£250 per year, depending on your property type and location.
Does buildings insurance cover roof leaks?
Yes, if caused by storms or accidental damage—wear and tear isn't covered.
Can I get buildings insurance without a mortgage?
Yes. Homeowners and landlords can buy it independently.
Do I need to update my policy after renovations?
Absolutely. Increased rebuild value or extensions must be reported to your insurer.
Does buildings insurance cover tenant damage?
Typically no—landlords need landlord buildings insurance for tenant-related damage.
What happens if I underinsure my home?
Insurers may only pay a proportion of your claim under the "average clause", leaving you to cover the shortfall.
Conclusion
When you compare buildings insurance, you're not just shopping for price—you're protecting your biggest investment. Take the time to review cover depth, customer reputation, and rebuild accuracy. The best policy is one that gives you peace of mind, not just savings.
About the Author: Andrew Myers, FCA-registered insurance adviser with 15 years' experience analyzing UK life insurance policies. Data sourced from Legal & General, ABI, and ONS 2024-2025 reports.