What buildings insurance covers
Buildings insurance covers the structure — walls, roof, floors and permanent fixtures — against events like fire, flood, storm and subsidence. Mortgage lenders require it. The best policy is built on an accurate rebuild cost (not your home's market value) with cover suited to your property type.
1. Standard buildings insurance
Covers the structure against common perils. Best for typical homes — the priority is an accurate rebuild figure so you're neither under- nor over-insured.
2. Accurate rebuild-cost cover
The rebuild cost (cost to reconstruct) differs from market value and is what matters for buildings cover. Best practice is a proper assessment — underinsurance can cut a payout proportionally.
3. Subsidence and flood cover
Crucial in at-risk areas, but sometimes excluded or expensive. Best for homes in subsidence- or flood-prone areas — specialist insurers (and schemes like Flood Re) can help where standard insurers won't.
4. Accidental damage cover
Covers structural mishaps like a DIY accident or putting a foot through the ceiling. Best added for fuller protection beyond named perils.
5. Non-standard construction cover
Thatch, timber frame, flat roofs, concrete or listed properties need specialist cover. Best for non-standard homes that mainstream insurers may decline or underprice.
How to choose
- Insure for the accurate rebuild cost, not market value
- Check subsidence and flood cover if relevant to your area
- Add accidental damage for fuller protection
- Use specialist cover for non-standard or listed construction
How to find the best buildings insurance
A specialist can ensure your rebuild cost is right and match cover to your property type and location at the best price. Find a home insurance specialist through Nesto — free, no obligation.
Frequently asked questions
Is buildings insurance a legal requirement?
Not by law, but mortgage lenders require it as a condition of the loan, and it's essential protection for any homeowner.
Should I insure for market value or rebuild cost?
Rebuild cost — the cost to reconstruct your home. It's often different from market value, and getting it wrong risks underinsurance.
Can I get cover in a flood-risk area?
Often yes — through specialist insurers or the Flood Re scheme, which helps make flood cover available and affordable in at-risk areas.
Do I need buildings and contents insurance?
Buildings covers the structure; contents covers your belongings. Homeowners usually need both; tenants typically need only contents.
What if my home is non-standard construction?
Thatch, timber frame, flat roofs and listed homes need specialist cover — mainstream insurers may decline or underprice them.