BUILDING INSURANCE

Building insurance is of vital importance - for example, if your house burnt down do you have the money to cover your losses? Mortgage providers insist that you have building insurance so that in the event of a disaster it can be repaired or rebuilt, as lenders don't want to be left without security for their loan.

A policy should cover funds to rebuild your home in the event of it being totally destroyed or damaged to the point that complete rebuilding is necessary. Policies usually cover against damage caused by events beyond your control including:

• Storm and flood damage
• Burst pipes and other incidents of water leakage
• Fire, smoke and explosions
• Vandalism or third party damage

Most building insurance policies will normally provide additional benefits that would be paid in the event of a claim. These include benefits such as provision of alternative accommodation if your home is uninhabitable, removal of debris and reasonable costs of architects, surveyors and engineers and also pay any legal fees that may arise from reinstating your buildings when loss or damage occurs.

As well as the structure, building insurance also covers permanent fixtures and fittings including baths, toilets and fitted kitchens, bedroom cupboards and interior decorations. The test is whether or not the fixture can be removed and taken to a new home, for example fitted cabinets. Policies will also usually cover outbuildings such as garages, greenhouses and garden sheds but might not cover boundary walls, fences, gates, paths, drives and swimming pools.