Buildings insurance
Buildings insurance is designed to give you financial protection against damage to the structure and fabric of your home. This usually includes any external parts of the property such as your shed, garage, conservatory or greenhouse.

Your buildings insurance allows for the provision of funds to rebuild your home in the event of it being totally destroyed or damaged to the extent that complete rebuilding is the only way to make it inhabitable.

It also covers you against damage caused by events that are beyond your control. This usually includes:

• storm and flood damage
• burst pipes and other incidents of water leakage
• fire, smoke and explosions
• subsidence
• vandalism or third party damage

It is important to note that different policies can provide cover for differing events. Never take anything for granted and always read the small print. If you feel unsure about understanding the terms, always ask the insurer directly or ask your solicitor to have a look at the policy and explain it to you.

Aside from the basic structure of the house, the policy should cover your windows, roofing, kitchen and bathroom, floors, electrical wiring and plumbing against damage caused by one of the listed events. Fittings and furnishings are usually covered under your contents insurance.

Who should have it?
Every homeowner should have a buildings insurance policy. Most lenders will insist that you have one in order to obtain a mortgage. Sensibly, they are covering their own back. Why lend you money when there is a risk that your house may burn down tow weeks later, perhaps leaving you with no home and no money to rebuild the home or repay the mortgage.

Many people who buy leasehold property do not need are covered by a group policy for the whole building. This will not include your contents and you should examine it closely to ensure that you do not require additional cover.

Who should have it?
To be able to offer you a quote, the insurer will want to know a great deal about the property you own. They will ask about the construction date and materials for the building - whether it is modern brick and tile or nineteenth century stone and slate will have an effect on your premium. Not all lenders will provide a mortgage for all types of property, and different insurers sometimes have restrictions on the type of building that they will insure. Some may refuse to cover the more unusual property types that exist in the UK, such as prefabricated buildings or thatched cottages.

Insurers also need to know a little about the local lie of the land. If you live in a village built entirely on marshland, you may find that you end up paying a substantial premium for your cover. If you live in the Isle of Wight, for instance, you may need to go to a specialist insurer, as the whole island is prone to subsidence. This can result in much higher premiums.