By: Simon B
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Home and Buildings Insurance
Home and buildings insurance covers you in the case of an unfortunate event such as your home may be damaged due to an event such as fire, flooding, or subsidence. These problems can be very expensive to put right, often tens of thousands of pounds. If you’re a property owner, don’t take the risk of doing without buildings insurance.
If you have a mortgage, your lender will insist on buildings insurance (it’s normal to have this requirement and binding by the contract), but you don’t have to buy the policy that your lender suggests. However, if you’re buying a leasehold property, you aren’t required to have this type of insurance; instead, the freeholder should have his own buildings insurance in place to cover the rebuilding costs of the entire building. You contribute to that insurance through your service charges.
Your buildings insurance covers the cost of clearing the site and rebuilding your home, which may be less than the market value of your home. Get an insurance valuation, or you may overpay for your policy.