What Does Building Insurance Cover?

Building insurance is a key part of protecting your home or property investment. Whether you're a homeowner, landlord or leaseholder, understanding what building insurance actually covers—and when it’s required—can help you avoid costly surprises later down the line.

Here’s a breakdown of what building insurance is, how it works, when you need it, and how to make a claim if something goes wrong.

What Is Building Insurance?

Building insurance is a policy that covers the cost of repairing or rebuilding the physical structure of your property if it’s damaged. This includes the walls, roof, floors, windows, doors and permanent fixtures like fitted kitchens and bathrooms. It’s designed to protect the bricks and mortar of your home—not the contents inside.

The cover usually includes damage caused by events such as fire, flooding, storms, subsidence, vandalism or escape of water from pipes.

How Does Building Insurance Work?

If your home suffers structural damage due to an insured event, you can make a claim to cover the cost of repairs or a full rebuild, depending on the extent of the damage. Your insurer will assess the situation, sometimes sending out a loss adjuster, before approving the claim. You may need to pay an excess depending on your policy terms.

Most policies are arranged on a reinstatement basis, meaning they aim to return your property to its previous state, not just pay its market value.

How Much Building Insurance Do I Need?

You should insure your property for the amount it would cost to rebuild it from scratch—not its market value. This includes materials, labour and demolition if necessary. The rebuild cost is usually lower than the market value and can be found in your mortgage valuation or calculated using tools from the Royal Institution of Chartered Surveyors (RICS).

It’s important not to underinsure. If your cover amount is too low, the insurer may reduce any payout proportionally. Likewise, overinsuring means you’ll pay a higher premium for no extra benefit.

When Do I Need Building Insurance?

You’ll need building insurance if:                     

• You own your home outright or with a mortgage. Lenders usually make it a condition of the loan.

• You’re a landlord. It’s your responsibility to insure the property’s structure.

• You’re buying a leasehold flat. You may be responsible for arranging your share of buildings insurance if it's not managed through a block policy.

You typically don’t need building insurance if:

• You’re renting. The landlord is responsible for insuring the building.

• You own a leasehold property where the freeholder or management company arranges the cover and includes it in service charges.

What Does Building Insurance Cover?

Most policies cover the following:

• Fire, smoke and explosion

• Flooding and storm damage

• Burst pipes and escape of water

• Subsidence and ground movement

• Theft or attempted theft (of parts of the building like doors or tiles)

• Vandalism and malicious damage

• Impact damage (from vehicles or falling trees)

• Rebuilding costs, including demolition and professional fees

Some policies also cover outbuildings, fences, driveways and pipes as standard, but you should always check your policy wording.

What Isn't Covered by Buildings Insurance?

While buildings insurance offers broad protection, there are important exclusions:

• General wear and tear

• Damage caused by poor maintenance (e.g. mould or rot)

• Faulty workmanship or materials

• Acts of war or terrorism (unless specifically included)

• Damage to contents (these are covered under contents insurance)

Optional extras like accidental damage cover or legal expenses may be available, but aren’t usually included as standard.

How to Make a Claim on Your Building Insurance

If something goes wrong, the first step is to contact your insurer as soon as possible. Most insurers operate a 24-hour claims line.

You’ll need to provide:

• Your policy number

• Details of the damage or event

• Photos or evidence, if possible

• Quotes or receipts for emergency repairs (if you’ve already had to act quickly)

Your insurer will guide you through the process, and may arrange for a loss adjuster to visit. Once approved, they’ll organise repairs or pay out the agreed amount.

It’s important not to carry out major repairs without speaking to your insurer first, unless it's an emergency.

Final Thoughts

Buildings insurance is essential for property owners in the UK. It covers your home’s physical structure and protects you financially against damage from a wide range of unexpected events. While it's not required by law, mortgage lenders will insist on it—and without it, you could be facing huge costs if something goes wrong.

Before buying a policy, make sure you understand what’s included, what’s excluded and whether any optional extras would give you extra peace of mind. And always insure for the rebuild value, not the market value, to avoid being caught out at claim time.