Buying a house is a significant investment that requires careful planning and consideration.
One important aspect of the home-buying process is getting the right insurance coverage. Building insurance is a type of insurance that protects your property from unexpected events such as natural disasters, theft, and damage.
Below we will discuss when you should get building insurance when buying a house.
When to get building insurance?
It is essential to obtain building insurance as soon as you exchange contracts with the seller.
This is because you are legally responsible for the property from the date of exchange.
The building insurance policy should cover the rebuild cost of the property in case of any damage, including fire, flood, or subsidence.
Without adequate coverage, you could be liable for the full cost of repairs, which can be significant.
It’s important to note that building insurance is not the same as home insurance. Building insurance covers the structure of the property and any permanent fixtures such as built-in appliances, while home insurance also includes contents insurance for your personal belongings.
Factors to Consider When Choosing Building Insurance
When choosing building insurance, there are a number of factors to consider. These include:
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The type of coverage you need: Building insurance can cover a range of events, such as fire, floods, and storm damage. It is important to choose a policy that provides the right level of coverage for your needs.
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The cost of the policy: Building insurance can be expensive, so it is important to shop around for the best deal. You should also consider the excess – the amount you will need to pay in the event of a claim – when choosing a policy.
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The insurer’s reputation: It is important to choose an insurer with a good reputation for customer service and claims handling.
Legal Requirements for Building Insurance in the UK
To comply with legal requirements for building insurance in the UK, it is important to take into account the following points:
- Building insurance may be required by some local authorities before granting planning permission or building regulations approval for certain types of property alterations.
- Planning permission is required for most types of property alterations, and building regulations approval is required for certain types of alterations.
- Evidence of building insurance may be required to ensure that you can cover the cost of repairs or rebuilding if any damage occurs during the alteration process.
- Certain types of alterations, such as structural alterations, extensions, loft conversions, and conservatories, may require building insurance.
- The exact requirements for building insurance may vary depending on the local authority and the type of alteration being carried out.
- When choosing a building insurance policy to meet the legal requirements for property alterations, it is important to consider the type of coverage needed, the value of the property and any alterations that have been made, and coverage for events such as fire, flood, and storm damage.
- You should also check the policy’s excess, choose an insurer with a good reputation for customer service and claims handling, and ensure that the policy provides adequate coverage to protect your investment and ensure that your alterations are carried out smoothly.
The short answer
It is essential to obtain building insurance as soon as you exchange contracts with the seller when buying a house, as this protects your investment during the period between the exchange of contracts and completion of the purchase.
