What does 'Building Insurance' mean when buying a property?
Find out what Building Insurance means when you are buying a property. 'What does Building Insurance mean?' plus over 150 other property related terms and jargon in plain English
This is often confused with contents insurance.
Buildings insurance covers the structure of the building itself and usually includes fittings such as flooring, fitted kitchens and bathroom ceramics (toilets, baths, etc.) It does not cover furniture.
Should you suffer a flood, for example, the repair work will be covered by buildings insurance while damaged furniture and personal belongings are covered by contents insurance.
If you take out a mortgage then buildings insurance is usually compulsory so the mortgage lender can cover their investment should something dramatic happen and you would not be able to afford the repair.
This is because if a dramatic issue arose, such as subsidence, there can be no argument as to which insurance company will pay for the work needed to rectify the problem.
To learn more about the ins and outs of building insurance and how to handle it during your purchase pick up a copy of my ebook How to Really Buy a Property.