What Is Buildings Insurance?

Buildings insurance is a type of home insurance that protects the structure of your property—covering walls, roof, and permanent fixtures—against risks like fire, flood, or subsidence. If you’re a homeowner, your lender will likely require you to have a buildings insurance policy to cover the cost of repairing or rebuilding your home if disaster strikes.

Let’s explore how a typical buildings insurance policy works, who needs it, and what to look out for when comparing your options.

TL;DR

Buildings insurance protects the structure and permanent fixtures of your home against risks like fire, flood, subsidence, and vandalism
A standard Lemonade Buildings Insurance policy typically covers unlimited rebuild costs, alternative accommodation, and owner’s liability, with optional extras like accidental damage and home emergency cover available
The cost of your policy depends on your property, chosen excess, location, and any add-ons you select
Homeowners usually need buildings insurance (especially if required by a lender), while renters only need contents insurance for personal belongings and liability

How does buildings insurance work?

A buildings insurance policy pays out if the structure of your home—such as the walls, roof, and permanent fixtures—is damaged by an insured event like fire, storm, flood, or vandalism.

After your insurer confirms the damage is covered, you’ll just pay your chosen excess, and they’ll take care of the rest. When you set up your policy, you’ll pick the excess amount that works for you. With Lemonade Buildings Insurance, you’ll need to choose two separate excess amounts:

General excess: £100 – £500
Escape-of-water excess: £400 – £800

Choosing a lower excess means you’ll pay less if you claim, but your premium will be higher. On the flip-side, choosing a higher excess amount will lower your premium, but you’ll be responsible for a larger sum in the event of a claim.

Picture this: You’re cooking a Sunday roast when a rag accidentally catches fire, spreading flames and smoke damage throughout your fitted kitchen causing £6,000 in repairs. Thanks to your Lemonade buildings insurance, you simply file a claim right on the Lemonade app. After you pay your chosen excess of £100 your policy covers the remaining £5,900—so you can get back to normal without facing a huge repair bill.

What does buildings insurance cover?

Most policies include core covers to protect your property’s essentials, plus optional extras such as accidental damage or alternative accommodation for added peace of mind. Let’s take a closer look at each:

Core Cover

What it covers	How it protects you
Unlimited rebuild cost	We pay to rebuild or repair the structure of your home—think walls, roof, fitted kitchen, and permanent fixtures
Alternative accommodation	Hotel or short-let bills (plus extra food & laundry) while your place is being fixed, up to £50,000
Owner’s liability	Up to £2.5 million if you cause injury or damage to others as the owner of your property

Covered perils include water damage, fire & smoke, burglary & vandalism, subsidence and extreme weather like floods or frozen pipes.

Optional extras (“super-powers”)

Add-on Cover	What it does
Home emergency cover	24/7 call-out for a broken boiler, blocked drains, or lost keys (up to £1,000 per event)
Legal expenses cover	Help pursuing or defending personal legal disputes—anything from wrongful dismissal to neighbour nuisance
Accidental damage cover	Covers sudden mishaps you cause (e.g. drilling through a pipe), up to £2,000 per claim
Household member extension	Living with a partner or family? Add them so the policy covers them, too

How much does buildings insurance cost?

The price of your buildings insurance quote depends on several factors—property type and age, construction materials, postcode, level of cover, chosen excess, and any optional extras or add-ons you choose.

With Lemonade, the unlimited cost of rebuilding means you won’t pay extra for underinsuring your home’s structure. Increasing your voluntary excess can help lower premiums, and you’ll pay more for enhanced features like accidental damage or alternative accommodation.

Do I really need buildings insurance?

Whether you need buildings insurance comes down to your situation:

Homeowners: Mortgage lenders typically require you to have buildings cover. Even without a mortgage, not having insurance could expose you to the huge costs of repairing severe structural damage
Leasehold flats: The freeholder often arranges a block-wide insurance policy, but always check if your flat is protected
Renters: Landlords are responsible for the building’s policy; renters just need their own contents insurance for personal belongings and liability cover

What’s not covered?

While buildings insurance covers a ton, there are a few exclusions to keep in mind:

Home-emergency call-outs, legal disputes, or accidental DIY disasters—unless you buy the relevant add-on
Gradual problems like wear and tear, poor maintenance, or issues such as mold
Pure personal-liability incidents or damage you cause as the occupier of your property

Keeping your home and finances safe

Buildings insurance is the safety net that keeps your biggest asset—and everyone who depends on it—secure. Ready to safeguard your home? Get a quote with Lemonade in minutes and see how easy unlimited cover can be.

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FAQs

Is accidental damage included automatically?

No. You’ll need to buy accidental damage cover as an optional extra with your home insurance policy.

Are outbuildings, garages, or sheds covered?

Yes, but only if they are located at the same address and if your main home has also been damaged by a covered event.

What if I extend my house next year?

If you extend your house, you need to notify your insurer so your unlimited rebuild cover remains up-to-date.

What’s the difference between owner’s and personal liability?

Owner’s liability is tied to your role as a property owner, while personal liability applies to everyday activities unrelated to property ownership. It focuses more on how you use or occupy the property. For instance, if your cooking accidentally starts a fire in a mate’s kitchen, personal liability would come into play.