How Much Does Buildings Insurance Cost?
Hint: Protecting the bricks and mortar you call home can cost less than you’d think.
The average cost of buildings insurance in the UK depends on a few factors, including your rebuild cost and any optional extras you choose. A well-structured buildings insurance policy offers valuable protection for your home’s structure.
Let’s explore what goes into the cost of Buildings insurance and how you can tailor your cover to fit your needs and budget.
TL;DR
- The average cost of Buildings insurance varies based on rebuild cost, location, and choice of cover
- Optional extras like home emergency, legal expenses, or accidental damage cover cost more but offer added protection
- Standard policies include unlimited rebuild, temporary accommodation, and owner’s liability cover
- Increase your excess, pay annually, boost security, or bundle with contents to lower your premium
What affects the cost of your buildings insurance?
There are a few core factors that go into every buildings insurance quote:
1. Your property and its rebuild cost
Your home insurance provider calculates your premium using details like your property’s age, construction materials, location (down to your postcode), and the cost of rebuilding your home—not its market value. Lemonade, for example, offers unlimited rebuild cost cover, insuring you for whatever it takes to restore your home after events like fire, subsidence, or storm damage.
2. Add-ons and optional extras
Enhancing your level of cover with add-ons will impact your insurance price. Popular options include:
| Add-on | What it Covers |
|---|---|
| Home Emergency Cover | 24/7 helpline for issues like boiler breakdowns or burst pipes (up to £1,000 per event) |
| Legal Expenses | Covers legal fees if you need to pursue or defend a claim |
| Accidental Damage Cover | Pays to repair accidental mishaps (think DIY gone wrong) |
| Household Member Extension | Expands your policy to include a partner or family members |
3. The excess you choose
The deductible, also known as excess, is how much you agree to pay when you make a claim. With Lemonade Buildings insurance, you’ll need to set two different excess amounts:
- General excess: £100 – £500
- Escape-of-water excess: £400 – £800
A higher voluntary excess will mean lower monthly or annual home insurance premiums, though you’ll need to cover more out-of-pocket if things go wrong.
What do you get with your buildings insurance policy?
Here’s what buildings insurance covers as standard, protecting your home and offering essential support when you need it most:
| Built-in Cover | How It Protects You |
|---|---|
| Unlimited Rebuild Cost | Pays whatever it costs to fully repair or rebuild the structure of your home |
| Temporary Accommodation | Covers hotel or rental costs during major repairs (alternative accommodation) up to £50,000 |
| Owner’s Liability | Protection of up to £2.5 million if you’re legally responsible for injury or damage to others as the owner of your home |
Optional extras like home emergency cover or accidental damage cover can help you create an insurance policy that gives you true peace of mind.
How can I lower my buildings insurance premium?
Looking to save on your buildings insurance? Here are a few ways to bring down the cost:
- Pay annually: Insurance providers often offer a discount if you pay your home insurance policy upfront, rather than monthly
- Increase your voluntary excess: Make sure it’s an amount you’d be comfortable paying if you ever need to claim
- Improve your home security: Smoke and burglar alarms can trim costs
- Bundle with contents cover: If you need both buildings and contents insurance, a combined policy can be cheaper than two separate policies
- Stay claim-savvy: Handling minor repairs yourself can help limit your premium amount
The bottom line
Insurance may not stop fires or theft, but it provides a financial cushion if the worst happens. By getting buildings insurance tailored to your needs, you can rest easy knowing your home is protected.
Take the first step, and get a quote with Lemonade today.
FAQs
Is buildings insurance required by my mortgage lender?
Yes, most mortgage lenders in the UK require homeowners to have a buildings insurance policy as a condition of the loan. This protects the lender’s investment if your property suffers major damage. Be sure to check your mortgage agreement for specific requirements. Remember, it’s your responsibility to arrange suitable cover.
What is the difference between buildings insurance and contents insurance?
Buildings insurance covers the structure of your home—including walls, roof, and permanent fixtures—against events like fire or burst pipes. Contents insurance, on the other hand, covers personal belongings and valuables inside your home. Many insurers offer a combined policy that gives both types of home insurance cover in one package.
Is it cheaper to buy buildings and contents insurance together?
A combined policy—covering both the structure and your possessions—often works out cheaper than two separate policies. Bundling can also make it easier to manage your home insurance claims in the event of a major incident.
Are listed buildings more expensive to insure?
Yes, listed buildings usually cost more to insure because their unique features and historic construction can make repairs or rebuilding more expensive. Special materials and skilled labour are often needed to meet conservation standards. Mention your property’s listed status when getting a home insurance quote.
How do I make sure my home is adequately insured?
Make sure your sum insured covers the full rebuild cost of your property, not just its market value. With Lemonade you won’t have to worry about it since we offer unlimited cover to rebuild your home. Also take a look at your policy each year, especially if you’ve renovated, added an extension, or upgraded your security. Think about what level of cover and optional extras work best for you to keep your home fully protected.
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