Home Insurance ? The Basics

the finer print of your policy for details.

Your buildings insurance premium is calculated on how much your home would cost to rebuild which is much cheaper than the value an estate agent would put on it. This is because a rebuild cost excludes the most expensive part of its value – the land your home sits on. You can calculate the cost of your home’s rebuild here.

Why home insurance is important

The thought of your home burning to the ground is pretty unbearable – but it would be more unbearable still if you did not have adequate buildings insurance in place. Essentially this could mean you are left without a home but still with the monthly mortgage commitment that you took to pay for it!

That’s why banks and building societies insist that buildings cover is taken at the point of signing a mortgage agreement. That said, as with any other type insurance, you are only covered if you continue to pay the premiums which is ultimately your responsibility.

Even just repairing damage to your home is very expensive. According to the Building Cost Information Service (BCIS), the average cost of rebuilding a side wall (including insulation) for a terraced house is a hefty £12,590 while costs for underpinning your home in the event of subsidence can literally run into tens of thousands of pounds.

These are all good reasons why, however many financial cutbacks you may need to make during leaner times,