What is buildings insurance?

Buildings insurance is there to help protect the structure of your home. Things like the walls, roof, windows, and permanent fixtures such as your fitted kitchen or bathroom suite. If something like a fire, flood or storm causes damage, your policy could help cover the cost of repairs, or even a full rebuild if needed.

It’s especially important if you’ve got a mortgage, as most lenders will ask for it from the moment you exchange contracts. They want to know the property – their security – is protected if anything goes wrong.

If you’ve cleared your mortgage and own your home outright, buildings insurance is still a smart move. Your house is probably your biggest asset, and this kind of cover offers peace of mind if disaster strikes – whether that’s a storm ripping tiles off your roof, or a burst pipe making it rain in your bathroom.

Why do I need buildings insurance?

If you’ve got a mortgage, buildings insurance usually isn’t optional – it’s a requirement from your lender. They want to make sure your home is protected, so you’ll need enough cover to at least match what you owe. They may recommend an insurance company, but you’re typically free to shop around and choose your own.

Even if you don’t have a mortgage, buildings insurance is still advisable if you own your home. Rebuilding after a major incident could cost a huge amount, and much more than most people could cover out of pocket.

If you own a leasehold property, the freeholder is typically responsible for buildings insurance and you will likely pay your share through the service charge. That said, if you own the freehold yourself, or you’re part of a group or committee that does, then it’s up to you to make sure the buildings insurance is in place.

Here’s why you’re on solid ground with buildings insurance:

  • Protects your biggest asset: Covers the cost of repairing or rebuilding your home if disaster strikes.

  • Keeps you mortgage-compliant: Ticks a key box for lenders and avoids delays with your home purchase.

  • Reduces financial stress: Helps you avoid massive out-of-pocket costs after fire, flood, or storm damage.

  • Gives peace of mind: You’ll know your home is covered, even when the unexpected happens.

Remember though, buildings insurance doesn’t protect your belongings should disaster strike. For that, you’ll need contents insurance. And if you want to keep things simple, buildings and contents insurance wraps up all your cover in one policy - and can work out cheaper than separate policies.

What does buildings insurance cover?

Typically covered

With buildings insurance, you’ll typically be covered for the key things that help protect the structure of your home and more. Depending on your insurer and chosen cover, this may include:

  • Damage to your home’s structure: Covers things like walls, roof, windows and permanent fixtures if they’re damaged by fire, smoke, lightning, flooding, theft or storms.

  • Subsidence and land movement: Includes cover for subsidence, heave of land and landslip, which can cause serious structural problems.

  • Outbuildings and outdoor features: Protection for contents of garages or sheds, plus features like swimming pools, patios, terraces and fountains.

  • Alternative accommodation: Pays for somewhere else to live if your home is temporarily uninhabitable due to damage covered by your policy. Landlords may also be covered for lost rent.

  • Matching set replacements: If part of a matching set (like tiles or fitted units) is damaged and a perfect match can’t be found, the policy could cover replacing the whole set.

  • Permanent fixtures and outdoor surfaces: Includes things like built-in wardrobes, kitchen worktops, driveways and patios – anything that's fixed in place as part of your home.

  • Replacement locks and keys: Covers the cost of replacing locks on external doors if your keys are lost or stolen, plus alarm systems and safes inside the home.

The above list is a helpful guide, but exactly what’s covered can vary between policies and lenders. It’s a good idea to compare buildings insurance options to find the right fit for your home.

What isn’t covered?

No insurance policy can cover absolutely everything, so it’s important to check what’s excluded from your policy. Common things not covered include:

  • General wear and tear or gradual deterioration.

  • Damage caused by wet rot, dry rot or frost.

  • Storm damage to fences, gates or hedges.

  • Problems resulting from poor workmanship or design faults.

  • Any events or damage that happened before your policy started, or situations you knew about beforehand (like a flood warning for your area).

  • Loss, damage or liability caused by deliberate or criminal actions by you or anyone living with you.

  • Damage caused by domestic animals, such as chewing, scratching, tearing or fouling.

The list above is a handy guide, but you do need to check the specifics of any policy you are considering. Read the policy details carefully and make sure you understand all the exclusions.

How much buildings insurance cover will I need?

When it comes to buildings insurance, it’s all about how much it would cost to rebuild your home – not its market value. This is your ‘sum insured’, and it’s usually lower than what you’d sell for.

Some insurers offer unlimited cover so you don’t need to calculate rebuild costs. But if you want to tailor your policy, the Association of British Insurers (ABI) has a handy online calculator. Be cautious about simply accepting a general estimate based on local data, it may not suit your home.

Rebuild costs can rise over time, especially if you make improvements like an extension. Some policies might increase cover automatically, but it’s still worth checking regularly. And if you have a listed property, or one with special architectural or unusual features, a surveyor can give a proper rebuild figure.

How much does buildings insurance cost?

According to the Association of British Insurers (ABI), for buildings-only cover, the average price paid in Q3 2024 was £329 for the year. However, that’s just an average and how much buildings insurance will cost for you depends on factors like your postcode, claims history, property type and the level of cover you go for.

Here’s some of the key influences on the cost of your buildings insurance:

  • Where you live: Areas with higher crime rates or more risk of flooding may push prices up.

  • The type of property: A listed building will usually cost more to insure than a standard home.

  • How your home’s built: The materials used to construct your home can affect your premium. For instance, timber-framed properties and thatched roof cottages might cost more to insure due to the increased fire risk. If your home’s made with unusual or hard-to-replace materials, that could bump up the cost too, as repairs may be trickier or more expensive.

  • Rebuild cost: Insurers base your premium on how much it would cost to rebuild your home from scratch.

  • Security features: Having burglar alarms, secure locks, or CCTV might help bring down the premium.

  • Your claims history: If you’ve claimed in the past, it can affect your price going forward.

  • Optional extras: Adding things like accidental damage cover can cost a bit more, but could be worth it for the peace of mind.

  • Your excess: Picking a higher voluntary excess – that’s the amount you agree to pay yourself if you make a claim, on top of any fixed excess – can help bring down the cost of your premium.

Did you know that your policy quote isn’t just based on you and your home? There are some other factors that can affect the cost of everybody’s home insurance:

  • Wild weather: Flooding is on the rise in the UK and more frequent storms mean more claims, which can push up premiums.

  • Higher repair costs: Labour, materials and energy prices have all gone up, so fixing homes now costs more – and insurance prices are catching up.

  • More water damage claims: Things like frozen pipes bursting in winter are surprisingly common, and they’re costly, which affects everyone’s premiums.

  • Rising number of claims: The more people claim for things like theft or damage, the more insurers have to pay out, and that cost gets reflected in your policy price.

Remember, it’s always worth shopping around when your renewal comes up. Even small differences in cover or excess can make a big difference to the premium.

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Answering your questions about buildings insurance

Compare more types of home insurance cover

Explore your home insurance options to find a policy that’s best for you and your property.

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Page updated on 6th November 2025, Reviewed by Richard Groom