For many individuals buying a home is one of the most important steps in their life. The process can be long and difficult, so when you do find the perfect property it makes sense to protect it, and this will mean getting Buildings Insurance. Many mortgage providers will insist that you have Buildings Insurance as part of your mortgage deal, but instead of simply accepting the Buildings Insurance they can provide it’s always worth exploring the options to see if you can get a better deal.
A safeguard for your investment
So what is Buildings Insurance? As the name suggests, Buildings Insurance is cover for your property in the event of any structural damage. Many believe that Contents Insurance covers damage of this variety, however this may not be the case as in some situations these policies are unable to cover the higher value of your property. Therefore, in these scenarios Buildings Insurance becomes necessary.
Furthermore, if you are buying a flat or an apartment as part of a larger building you must ensure that the owners of the freehold have adequate Buildings Insurance, especially as any damage to the structure can still impact or even destroy your property.
Why do I need Buildings Insurance?
Although in the UK we are fortunate not to be situated in areas that are prone to natural disasters such as earthquakes, there are still many incidents that can cause considerable damage to properties such as house fires and flooding.
House fires are a particularly pressing concern, and recent statistics from the Fire and Rescue Services reveal that in 2018 alone there were over 30,000 house fires in the UK. 37% of these fires were caused by factors beyond people’s immediate control such as faults in electrical appliances. This just goes to show how necessary Buildings Insurance is in safeguarding your property investment when the worst occurs.
Buildings Insurance tends to include damage caused by a wide variety of events aside from things such as fires and flooding. These include damage caused by falling objects (trees or aircraft parts), collision damage (if a vehicle should drive into your home), burst pipes and boiler damage and even any possible destruction caused by rioting and other violent social instances. As such, it’s important to explore what policies on offer do cover, and select one that you think is most suitable to your needs.
How much cover should I have?
To be truly effective, the insurance you take out needs to be able to cover the costs of completely rebuilding your house if necessary. This differs from the market value of your property as it is fuelled by the costs of rebuilding and various other factors, meaning that rebuilding a home can easily cost more the value of the house if it were to be put up for sale on the market.
As the value of rebuilding can be very difficult to estimate, it’s not uncommon for insurance companies to provide conversion rates in a table that will help you to see how much cover that your property will require. Of course, this is not influenced merely by size and location alone, and if your property is a listed building or is deemed to be worth a lot of money this will significantly impact the level of cover you will need.
One important thing to consider is the rate of inflation. Most insurance companies will index-link their cover on an annual basis – effectively ensuring rates of cover keep up with inflation. However, even if this is the case it may be wise to review your Buildings Insurance every two to three years to see if the policy is still offering you the best results.
So how do you choose?
It may seem like the simple answer, but simply opting for any Buildings Insurance offered by your mortgage provider may prevent you from getting the best deal.
To help find a deal that really works for you, advice from an Independent Financial Adviser (IFA) can be especially beneficial. Not only will they be able to help translate all of the jargon and other legalities of Buildings Insurance, but they will also have the knowledge to be able to help you choose a policy that works the best in your individual situation.
The IFAs at money4dentists come especially recommended, as not only do they have years of experience in aiding dental professionals with necessities such as Buildings Insurance, but they are also highly familiar with the dental industry as a whole, meaning they will understand your needs from the start.
Better safe than sorry
Buildings Insurance may seem like nothing but a second thought compared to finding a good mortgage rate and the right property to begin with, but making a wise decision about your cover can be financially rewarding. Not only will a good policy protect you from any unfortunate occurrences, but it will also be likely to save you money over time compared to the generic cover often offered by mortgage providers.
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