Home insurance (buildings)

A clear look at buildings cover for UK homes

Buildings insurance protects the physical structure of your home - the walls, roof, floors, fitted kitchen and bathroom - against unexpected events such as fire, storm, flood, escape of water, theft-related damage and subsidence. For many, it is a condition of a mortgage. Even without a loan, the question is simple: could you afford to rebuild or repair your home after a major incident? Most households could not.

The UK market is evolving. Premiums rose sharply between 2021 and 2024 as inflation, supply chain pressures and severe weather drove claims costs higher. Insurers paid £1.6 billion in UK property claims in a single quarter of 2025, underlining the real-world risks homeowners face. After a brief dip in 2025, the market is projected to grow steadily towards £12.55 billion by 2030. That points to ongoing demand and a focus on resilience.

Only accurate sums insured provide reliable protection. Guesswork can be costly.

Older properties tend to cost more to insure due to specialist materials and complex repairs. New builds often see lower premiums thanks to modern standards and lower risk profiles. Regional differences matter too, with some parts of the UK facing higher typical costs due to localised risk and claims history. While there are early signs of conditions stabilising, modest premium rises are still expected.

Insurance can offer real financial protection, but only when you understand what is covered - and where the gaps are. This guide sets out the essentials in plain English so you can assess your needs, compare options safely and avoid common pitfalls like underinsurance.

What it covers in practice - and where limits apply

Buildings insurance typically covers the cost to repair or rebuild the fabric of your home when something unexpected and insured happens. That usually includes damage from fire, storm and flood, escape of water from pipes, theft-related damage, vandalism and subsidence. Fixed elements like walls, roof, floors, fitted bathroom suites and kitchens are part of buildings cover. Outbuildings and boundary walls may also be included, subject to limits.

Policies set out specific exclusions and conditions. Gradual wear and tear is not covered. Maintenance issues - for example, a long-term leak due to poor upkeep - are usually excluded. Flood cover may exclude properties in very high-risk zones unless agreed. Subsidence often carries a higher excess. Accidental damage is not always included by default and might be an optional add-on.

If you claim, insurers assess the cause, the extent of damage and whether your policy covers the event. You typically pay an excess and the insurer funds the rest up to the sum insured. Accurate rebuild cost is crucial because if you insure for less than the true rebuild value, many policies apply the average clause - reducing any payout in proportion to the underinsurance. For example, if you insure for two thirds of the true rebuild cost, you might only receive two thirds of any claim, not just large losses.

In simple terms, buildings insurance is there for sudden, unforeseeable damage rather than everyday upkeep. It is designed to put you back in the position you were in - within policy limits - not to improve the property.

Who benefits most from buildings cover

Buildings insurance is essential for homeowners with a mortgage and strongly advisable for anyone who owns their home outright. It is also relevant to landlords, who typically arrange buildings cover for the property structure while tenants insure their own contents. Owners of older homes, listed properties or larger houses may face higher premiums due to rebuild complexity and should pay particular attention to sums insured and specialist features.

If you own a leasehold flat, the buildings cover is often arranged by the freeholder or managing agent as part of the service charge. Check the lease to confirm. If you are a tenant, you normally do not need buildings cover, but contents insurance remains important.

It may be less necessary to buy a standalone buildings policy if your building is fully insured by a block policy that correctly covers your specific flat. Always verify the details, limits and reinstatement basis before relying on it.

Choosing cover levels and add-ons you can understand

1. Basic - perils-based buildings cover

   • Covers core risks such as fire, storm, flood, escape of water and theft-related damage.
   • Lower premiums but narrower scope. Accidental damage usually excluded. Higher excesses may apply.
   • Suitable for budget-conscious owners in lower risk areas who prefer essential protection.

2. Standard - wider buildings cover

   • Includes core risks plus extras like alternative accommodation if your home is uninhabitable and cover for outbuildings and boundary walls within limits.
   • May include trace and access for leak detection. Accidental damage may still be optional.
   • Good balance of price and protection for many homeowners.

3. Premium - enhanced protection

   • Higher limits, broader accidental damage, extended cover for fixtures, glass and sanitary ware.
   • Often better for complex or larger properties where rebuild costs are significant.
   • May include emergency assistance and higher alternative accommodation limits.

4. Optional add-ons to consider

   • Accidental damage to buildings - covers mishaps like drilling into pipes or breaking built-in fixtures.
   • Home emergency - rapid assistance for urgent issues like boiler breakdowns or burst pipes.
   • Legal expenses - help with certain disputes, subject to terms and prospects of success.
   • Gadget or contents extensions - only if not already covered elsewhere.

Tip: Select the add-ons you will actually use. Unnecessary extras can increase premiums without meaningful value.

What drives the price - and how costs vary

Eligibility and what insurers will ask for

Most UK homeowners can apply, including freeholders and landlords. Insurers typically require details about the property structure, year built, number of bedrooms, construction type, roof materials and security features. They will ask for your claims history and whether the property is your main residence, let to tenants or unoccupied for extended periods. High-risk features such as thatched roofs or subsidence history require disclosure.

You will usually be asked for an accurate rebuild cost. Many insurers use industry calculators, but large or unusual homes may need a professional assessment. Applications can be declined if the property has a history of subsidence or significant flood risk without mitigation, if it is undergoing major works, or if information provided is incomplete or inaccurate. Always answer questions truthfully to avoid problems at claim time.

Your path from quote to claim - made simple

1. Get a quote with accurate property details and a realistic rebuild estimate.
2. Compare cover levels, excesses and key exclusions side by side for clarity.
3. Adjust sums insured and optional add-ons until the policy fits your needs.
4. Review documents, check assumptions, correct errors and confirm your preferred start date.
5. Purchase the policy and store confirmation, schedule and policy booklet safely.
6. If something happens, make the area safe and contact your insurer promptly.
7. Provide evidence, cooperate with assessors and agree repairs or cash settlement.

Advantages, trade-offs and honest limitations

Key checks before you commit

Before buying, read the policy schedule and booklet carefully. Pay close attention to the sum insured and how it is calculated - this is the backbone of your protection. Check the excesses for standard claims and for specific perils like subsidence or escape of water. Understand any exclusions tied to maintenance, unoccupancy or high-risk features, and the limits for outbuildings, boundary walls and alternative accommodation.

Confirm whether accidental damage is included or optional. Look at renewal processes and how your premium may change after a claim. Ensure your details are correct, as inaccurate information can affect claims. Keep proof of ownership for fitted fixtures where relevant, and consider a professional rebuild assessment if your property is large, older or unusual.

Alternatives and related cover types

1. Contents insurance - protects belongings like furniture, electronics and clothing. Ideal for homeowners and tenants. Buy alongside buildings or separately if the building is already insured.
2. Combined buildings and contents - a single policy for structure and belongings. Often convenient and sometimes cheaper than separate policies, depending on the insurer.
3. Landlord insurance - designed for let properties, typically combining buildings cover with landlord-specific options like loss of rent and liability.
4. Specialist high net worth home insurance - tailored for large or complex homes with higher sums insured and bespoke underwriting.

Frequently asked questions

Q: Do I need buildings insurance if I own my home outright? A: It is not a legal requirement, but it is strongly advisable. Most people could not afford a rebuild after a major incident. Without cover, you bear the full financial risk for structural damage.

Q: How do I find the correct rebuild cost? A: Use reputable calculators as a starting point and read the assumptions. For large, listed or unusual homes, commission a professional rebuild assessment. Review the figure regularly to avoid underinsurance and inflated premiums from overestimation.

Q: Why are premiums rising even if I have not claimed? A: Market-wide factors influence pricing. Claims costs have climbed due to inflation, materials and labour, and severe weather. Insurers also price regional risk and property characteristics which can change over time.

Q: Are floods and subsidence always covered? A: Often yes, but terms vary. High-risk properties may face higher premiums and excesses or require specific agreements. Subsidence cover commonly carries a larger excess. Check your schedule and exclusions carefully.

Q: What is accidental damage to buildings? A: It covers sudden, unintended events such as drilling into a pipe or cracking a built-in worktop. It is not standard on every policy. If included, check the scope and any exclusions or claim limits.

Q: I live in a large home and struggle at renewal. What should I do? A: Seek insurers or brokers experienced with higher sums insured and complex properties. Review your rebuild cost, consider specialist surveys and be prepared to provide detailed property information to support underwriting.

Where to go from here

Take a moment to review your rebuild cost and policy details. Compare quotes on a like-for-like basis, focusing on sums insured, exclusions and excesses rather than price alone. If your home is older, large or unusual, consider a professional valuation and specialist cover. You are in control - take your time and choose a policy that fits your needs.

A precise rebuild value is the single most effective way to avoid underinsurance.

Important information

This guide provides general information, not personal financial advice. Policy terms, limits and exclusions vary by insurer. Always read your policy documents carefully, verify assumptions, and seek professional guidance if you need help assessing your rebuild cost or specific risks.