Buildings insurance: FAQs
What's the difference between sum-insured and bedroom-rated?
You can opt to insure your home room-by-room
There are different ways to select the level of cover you need. With a sum-insured policy, you work out the rebuilding cost of your home (not the market price but the cost of rebuilding the property from scratch) and the insurer calculates your premium on that basis.
A bedroom-rated policy does away with the need to calculate exact costs, and instead is based on the number of bedrooms your home has (subject to maximum amounts of cover).
It's not always obvious which type offers the best value, so we suggest you get quotes for each before deciding.
How do I value an 18th-century cottage for buildings insurance purposes?
You should insure your house for the full, rebuilding cost. As yours is an older property, it's not so easy to calculate.
If you haven't had the property surveyed recently, ask a chartered surveyor to prepare a valuation for insurance purposes. You can find a surveyor at The Royal Institution of Chartered Surveyors. See the Building Cost Information Service for more about rebuilding costs.
I use one bedroom as a games room and another as a study. How many bedrooms shall I tell my insurers I have?
Insurers will want to know how many rooms were originally designed for sleeping in, even if they are now used for a different purpose. Your insurer may also want to know whether any rooms have been converted into bedrooms.
What's accidental damage cover?
On a buildings policy, this protects against damage you cause to your building or fixtures and fittings. Standard policies include only limited cover, for example, for accidental damage to glass in doors, windows and skylights, and damage to bathroom fittings such as baths and sinks.
You can pay extra to extend accidental damage cover to a wider range of problems. Typically this costs between £20 and £100 a year extra.
I took out buildings insurance recommended by my mortgage lender - can I switch to a cheaper policy?
Most lenders will insist you have comprehensive buildings insurance
A mortgage lender will insist you have buildings insurance so the security for its loan is protected. Often the lender will recommend an insurer and arrange the cover for you (and the lender earns commission from the insurer).
You can arrange your own cover, and often much more cheaply. However, the lender will want to check the policy is adequate and may charge you a 'switching fee'. Your new insurer might be willing to pay this fee for you.
If I live in an area at risk of flooding, will I still be able to get insurance?
Currently, there's an agreement between the government and insurers that insurers will continue to offer cover to existing customers living in areas at high risk of flooding so long as the government commits sufficient money towards maintaining and improving flood defences.
Even if I don't live in a flood-risk area, will my house insurance go up?
Our research found the quotes we got for 2007 and 2008 showed no notable increase across the board. However, the Association of British Insurers says some companies have stated that premiums will rise due to claims in 2007.
How can I tell if my home's at risk of flooding, and what can I do to minimise damage?
The Environment Agency and Scottish Environment Protection Agency websites have maps showing areas of land that may be at risk of flooding from rivers and the sea. The Environment Agency also runs Floodline Warnings Direct, a service that provides free flood warnings by telephone, mobile, fax or pager.
To minimise damage you should do the following where appropriate:
- Replace timber floors with concrete and covering with tiles
- Replace chipboard/MDF kitchen and bathroom units with plastic equivalents
- Move boilers and electrical points well above likely flood level
- Install one-way valves into drainage pipes to avoid sewage backing up into the house
The Association of British Insurers estimates protecting a larger home from prolonged flooding can cost upwards of £20,000. However the cost of repairing flood damage to properties that have taken such measures can be reduced by 80%.
More help and advice
The National Flood Forum is a community-based network set up by people who have experienced flooding. It provides information on all types of flooding and offers free advice on where to buy flood-protection products or get specialist help or advice on insurance.
What is subsidence, and how does it affect insurance premiums?
Subsidence generally happens when the soil - usually clay - on which houses are built shrinks or swells, depending on the weather. The contraction of the clay can cause structural damage to buildings, especially if the amount of movement varies between one part of the building and another.
The problem is exacerbated by the change in our climate, with extremes in the temperature and rainfall we've been experiencing.
How to spot subsidence
If you spot cracks appearing in your house, it's not necessarily subsidence. Your property may be experiencing 'settlement' which occurs when a building settles under its own weight. This is common in new buildings and extensions.
However, if new or expanding cracks appear, doors or windows stick for no particular reason and rippling wallpaper is not caused by damp, there is a chance you may have subsidence.
Be mindful of big trees growing near your property
Reducing the risk of subsidence
- Try not to plant trees too close to your property, as they take a significant amount of water from the soil, causing it to shrink.
- Maintain pipes round your property. Leaking water can wash away soil from foundations.
Effect on house insurance
All insurance companies in our survey provide cover for subsidence, and all specify an excess, typically around £1,000. However, terms and conditions relating to subsidence vary from insurer to insurer, so if you think you may have to claim, check your policy documents carefully.
If you've made a claim for subsidence in the last year and are now looking to switch, many new insurers will decline you. More help and advice The Royal Institute of Chartered Surveyors (RICS) can provide further practical advice and can recommend a specialist if you suspect your property has subsidence.
I've been asked whether the surrounding area is free from subsidence, landslip and heave. What does 'surrounding area' mean?
There's no cut-and-dried definition and, in any case, insurers shouldn't be asking questions requiring specialist knowledge. If they do, get them to explain exactly what they want to know.
However, you're legally obliged to mention anything you think might affect your insurance. This would include, for example, that the house next door has had subsidence, or there was a problem locally.
Will I be charged more if I pay by instalments?
Some insurers, but not all, charge extra if you pay by monthly instalments rather than a single annual premium.
Is insuring a flat different to insuring a house?
Flats are generally smaller than houses, but some insurers charge mansion-style premiums, so it's definitely worth shopping around. Have a look at our page on flat insurance for pointers.