Buildings Cover

POLICY CHECK SEVEN:
Am I getting enough buildings cover? This isn’t just important when it comes to alternative accommodation or loss of rent payments. If your property suffers subsidence, fire or other hazard then buildings insurance will kick in. But if you have valued your property too low you claim can be scaled down or refused altogether. When you insure your building you need to focus on the rebuild cost, not the market value of the property. Rental properties in poorer areas often cost more to rebuild than they do to buy, so if you focus on the purchase price you may be underinsured. Get the right figure by following the industry’s official calculations. There’s more information at the Association of British Insurer’s website www.abi.org.uk. Look at the ABI/BCIS Rebuilding Cost Calculator.