A Comprehensive Guide to Buildings Insurance: Protecting Your Most Valuable Asset
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Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
12.06.2025
Written by:
Richard Johnson
Ascot Protection Expert
Last Updated:
12.06.2025
Introduction: Why Buildings Insurance Matters
As a mortgage broker, we understand that buying a property is one of the biggest financial commitments you’ll ever make. Whether it’s your dream home, a first step on the property ladder, a buy-to-let investment, or a commercial unit, it’s crucial to protect that asset with the right insurance.
Buildings insurance is not just a smart choice, it’s often a mandatory one. It safeguards the structure of your property against unexpected events like fire, storm damage, flooding, subsidence, and more. This applies not only to residential buildings but also to those needing commercial property insurance or commercial building insurance. Without it, you risk facing huge repair bills or even complete financial loss in the event of serious damage.
In this guide, we’ll explain everything you need to know about buildings insurance: what it is, why you need it, what it covers, and how to get the right policy for your needs, whether for residential or commercial purposes.
What Is Buildings Insurance?
Buildings insurance is a type of property insurance that covers the physical structure of your home or commercial building. This includes:
- The walls, roof, and floors
- Doors and windows
- Fitted kitchens and bathrooms
- Pipes, wiring, and drains
- Permanent fixtures (e.g., built-in wardrobes)
If you own business premises, commercial building insurance works similarly, offering protection for office buildings, shops, warehouses, and more.
Why Buildings Insurance Is Essential
A Mortgage Requirement – If you’re buying with a mortgage, your lender will almost certainly require you to have buildings insurance in place from the date of exchange of contracts. This applies to both residential and commercial property insurance policies.
Financial Protection Against Damage – Rebuilding or repairing a property after a fire, flood, or storm can cost tens or even hundreds of thousands of pounds. Whether it’s your home or a business property, the right insurance ensures you’re not left to cover that cost yourself.
Peace of Mind – With the right policy, be it residential or commercial building insurance—you can rest easy knowing your investment is protected against potentially devastating events.
What Does Buildings Insurance Cover?
A buildings insurance policy typically covers the following:
- Fire damage
- Storm damage
- Flood damage
- Subsidence
- Vandalism
- Burst pipes
- Falling trees
- Damage from vehicles or aircraft
While the policy covers the building structure, it does not cover the contents of the home. For full coverage, you may want to consider adding contents insurance to your policy. Always check your policy documents for exclusions and limitations.
What Extra Cover Can I Add to Buildings Insurance?
A standard buildings insurance policy typically includes protection against:
- Fire, smoke, and explosions
- Storms and floods
- Burst pipes and water leaks
- Subsidence and ground heave
- Falling trees, lampposts, or aerials
- Vandalism and malicious damage
- Vehicle or aircraft collision
- Damage to fixtures
If you’re protecting business premises, commercial building insurance offers similar cover tailored to the unique risks and regulations associated with commercial use.
What’s Not Covered? Common Exclusions
Most standard buildings insurance policies—whether residential or commercial property insurance, do not cover:
- General wear and tear
- Pest infestations
- Poor maintenance
- Business-related damage (unless covered by a commercial policy)
- Damage from tenants (for residential cover)
- High-risk flood zones (may need specialist policies)
For businesses, it’s important to ensure you have dedicated commercial property insurance to cover liabilities and contents as well.
How Much Cover Do You Need?
Rebuild Cost vs. Market Value
Always insure for the rebuild cost—not the market value. This principle applies whether insuring a home or calculating coverage for commercial property insurance.
How to Calculate Rebuild Cost:
- Use the ABI Rebuild Calculator
- Consult a recent survey
- Get a professional valuation (especially for unique or commercial premises)
Policy Features to Look Out For
Whether you need residential or commercial building insurance, valuable features include:
- Accidental Damage Cover
- Trace and Access
- Alternative Accommodation (or business interruption cover for commercial properties)
- Legal Expenses Cover
- Home/Commercial Emergency Cover
Buildings Insurance for Different Property Types
- Freehold Homes – Full owner responsibility
- Leasehold Flats – Check what’s covered in service charges
- New Builds – Still require buildings insurance from exchange
- Non-Standard Construction – Needs specialist cover
- Commercial Properties – Require tailored commercial property insurance, including liability and tenant-related coverage
When Should You Take Out Buildings Insurance?
Arrange cover from the date of contract exchange. This is true for both residential homes and commercial buildings, where insurers must be aware of business use or occupancy.
How Much Does Buildings Insurance Cost?
Premiums vary based on:
- Location (including business districts or high-crime zones)
- Property size and use
- Materials used in construction
- Security and safety measures
- Claims history
Commercial building insurance may carry higher premiums due to increased risk and liability exposure, but it’s essential for protecting your business assetss
How to Make a Claim
The process is similar across both residential and commercial property insurance:
- Contact your insurer
- Provide evidence
- Undergo assessment
- Receive compensation or repair
Businesses may also need to file claims for loss of income or legal liability under commercial building insurance.
Buildings Insurance and Buy-to-Let Properties
Landlords must declare the property’s use and may require:
- Landlord-specific cover
- Loss of rent protection
- Tenant damage cover
If your property is used for business or mixed purposes, commercial property insurance may be more appropriate than standard landlord cover.
Can You Switch Buildings Insurance Providers?
Absolutely. We can help you compare both residential and commercial property insurance options during remortgage or review periods to ensure competitive pricing and adequate cover.
Benefits of Arranging Buildings Insurance Through Ascot Mortgages
As a full-service mortgage broker, we provide access to:
- Residential and commercial building insurance policies
- Expert advice tailored to your property type and use
- Bundled options with contents and liability insurance
- Protection for investors and business owners
- Smooth coordination with your mortgage timeline
Final Thoughts: Protect Your Property, Protect Your Future
Whether it’s your home, a rental, or a place of business, buildings insurance is essential to protecting what matters most. From residential properties to offices, shops, or industrial units, we help you find the right solution—be it standard buildings insurance or tailored commercial building insurance.
At Ascot Mortgages, we make sure your investment, residential or commercial are protected from the ground up.
Frequently Asked Questions (FAQs)
Q: Can I get buildings insurance for a property under renovation?
Yes, especially important if you’re converting a space for business use. You may need specialist commercial property insurance.
Q: Is buildings insurance tax-deductible?
It can be if the property is used for business—check with your accountant. Many commercial building insurance premiums qualify as business expenses.
Q: What if I own a mixed-use property?
You’ll likely need a combination of residential and commercial property insurance to ensure full coverage.
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FAQ
The cost of building insurance varies, typically ranging between £100 to £250 per year, depending on factors such as property size, location, and risk factors like flooding or subsidence.
Buildings insurance covers the structure of your home, while contents insurance protects your belongings inside the home, such as furniture, electronics, and valuables.
If your property is made from materials other than brick, stone, or tile, it may be considered non-standard construction, and you may need specialist insurance.
No, a garage is typically not counted as a room, but it should still be included in your building insurance policy.
Rising damp is usually not covered by standard building insurance policies, as it is considered a maintenance issue rather than sudden damage.
Yes, you can get buildings insurance in a flood-risk area, though it may come with higher premiums. You may also want to check if you qualify for the Flood Re scheme, which helps reduce costs for homes in high-risk areas.
Yes, many buildings insurance policies will cover subsidence, but it’s important to check your policy details as this may come with higher excess fees.
If you’re a leaseholder, it’s usually the freeholder’s responsibility to arrange buildings insurance. However, always check your lease agreement to be sure.
Major renovations or extensions may not be automatically covered by your policy. Notify your building insurance provider before starting any significant work.
No, only the property owner can take out buildings insurance, though tenants may need contents insurance.
Yes, most buildings insurance policies cover leaks caused by sudden events, such as a burst pipe, but slow leaks or poor maintenance may not be covered.
You should insure your property for its rebuild value, which is the cost of rebuilding the property from scratch, not the market value.
Buildings insurance typically covers damage caused by fire, storms, floods, subsidence, and other significant events affecting the structure of your home.
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