If you have just bought a property with buildings already on it or are intending on building fixed structures, you probably need to have building insurance. Building insurance is cover against damages caused by natural disasters or people. It covers only the structure of the building itself, not the contents of the building. For that, you need contents insurance. Let us stick to building insurance for now.

Building insurance comes in a variety of forms, each of which covers different types of damage to varying levels.

The major type of building insurance which is available is loss and damage insurance. This will cover you against natural disasters and weather damage. These are also termed acts of God. This means that they are not caused by any person and are completely out of anyone’s control. The y include things like rain damage and lightning strikes as well as floods and earthquakes. You can include all the buildings on your property under one policy.

You can include standard accidental damage cover in your building insurance policy. This will cover you for damages caused to external fittings and add-ons to your home like solar panels and the glass in your windows. It can also be extended to include the piping and cabling that runs to your house.

Some people own multiple buildings and rent the additional space out as a source of additional income. In a case like this, building insurance is the landlord’s responsibility and not the tenants. The building insurance does not cover the tenants possessions, investing in contents insurance is the tenant’s responsibility and choice. Since tenants have a tendency to cause damage to the building they rent, it is definitely advisable to have building insurance in place before renting out the buildings. That way, should your building be damaged by irresponsible tenants, you are not put out of pocket by the cost of the repairs required to make the building usable again.

Should you have a partially built structure, builder’s risk insurance could be a good idea. This insurance will cover you against damage caused to the unfinished building be that caused whatever natural event is the cause of the damage. If you do not have this kind of insurance, you will be liable for the cost of the repairs.

There are many other types of building insurance available, which you decide to opt for is dependant entirely on what you intend to do with the building you are insuring. Older houses which have historical value will never be insured for their true value as this is inestimable. Insurance for this kind of home will only cover the actual cash value of the house, not the replacement value. Building insurance for a commercial building varies according to what use the building is put. A shopping centre will need very different building cover than a warehouse, for example, will require.

The general idea is to ensure that you are able to rebuild you building in case of it being damaged by any cause whatsoever, within reason of course, without costing you, the owner, very much. The more risks your building faces, the more you will pay in insurance premiums and the higher your excess will be. As with most insurance policies, it is often possible to tailor the policy to your needs.

For more building insurance tips, as well as more information on in-house bank insurance, visit our insurance website.