Buildings insurance: what it covers and how much you need

Buildings insurance is the part of home cover that protects the bricks and mortar of your home. If you have a mortgage, your lender will require it, but it is worth understanding properly whether you own outright or not. This guide explains what buildings insurance covers, how much cover you need, and the costly mistake of under-insuring.

What buildings insurance is

Buildings insurance covers the physical structure of your home and its permanent fixtures and fittings. That means the walls, roof, floors, ceilings and windows, plus things built into the property such as a fitted kitchen, bathroom suites and built-in wardrobes. It typically also covers permanent outdoor structures like garages, sheds, greenhouses, drives, fences and boundary walls. In short, it covers the parts of your home that you could not simply pick up and take with you if you moved, as distinct from your contents.

What it covers you against

A standard buildings policy covers damage from a range of insured events. These usually include fire, smoke, explosion, storm and flood, escape of water from burst pipes, subsidence, theft and attempted theft, vandalism, falling trees, and impact from vehicles or aircraft. If your home suffers damage from one of these events, the policy pays to repair or rebuild it. The exact list and any conditions vary between insurers, so it is always worth reading the policy to see precisely what is and is not included.

Rebuild cost, not market value

The most important figure in buildings insurance is the sum insured, and it is based on the rebuild cost of your home, not its market value. The rebuild cost is what it would cost to rebuild your home from scratch if it were destroyed, including labour, materials and clearing the site. This is often lower than the market value, because the market value includes the land, but for some properties it can be higher. Getting this figure right is essential.

How to work out your rebuild cost

You can estimate your rebuild cost using an online tool based on figures from the Building Cost Information Service, which many insurers use, or for unusual properties you can commission a professional valuation from a chartered surveyor. Either way, do not simply guess or use your home's sale price. An accurate rebuild figure ensures you are neither paying for more cover than you need nor, more dangerously, leaving yourself under-insured if the worst happens.

The danger of under-insuring

Under-insuring, where your sum insured is lower than the true rebuild cost, is a common and costly mistake. If you are under-insured, an insurer may reduce a claim payout in proportion, so even a partial repair might not be covered in full. With building costs having risen in recent years, many homes are under-insured without their owners realising. Reviewing your rebuild figure periodically, especially after extensions or rising costs, protects you from a shortfall at claim time.

Who needs buildings insurance

If you own your home, you need buildings insurance, and if you have a mortgage your lender will require it as a condition of the loan. If you own a leasehold flat, the building is often insured by the freeholder or management company, with the cost shared through a service charge, so you may not need your own buildings policy, though you should check. Tenants do not need buildings cover at all, as that is the landlord's responsibility.

What buildings insurance does not cover

Buildings insurance covers sudden, accidental damage from insured events, not wear and tear or gradual deterioration. So it will not pay to fix a roof that has simply worn out, damp that has built up over time, or poor maintenance. It also typically excludes damage from a lack of upkeep. Keeping your home well maintained is therefore not just sensible but part of keeping your cover valid, since neglect can lead to a claim being refused.

How much does it cost?

The average buildings-only premium was around £306 a year in early 2026, according to the Association of British Insurers, though the price for your home depends on its rebuild cost, location, age, construction and claims history. Homes in areas prone to flooding or subsidence, and non-standard constructions, tend to cost more. Our guide to how home insurance premiums are calculated explains the factors, and our guide to lowering your home insurance covers ways to save.

Optional add-ons

You can usually add extras to a buildings policy. Accidental damage cover for the structure, for example putting a foot through the loft floor or drilling into a pipe, is a common one. Home emergency cover helps with urgent problems like a boiler breakdown or a blocked drain. As always, weigh whether each add-on suits your home and budget rather than accepting them automatically, and check whether any overlap with cover you already hold elsewhere.

Subsidence and escape of water

Two of the most significant buildings claims are subsidence and escape of water. Subsidence, where the ground beneath a property moves and causes cracking, can be very expensive to put right, and the average subsidence claim now runs to many thousands of pounds. Escape of water, from burst or leaking pipes, is one of the most common claims of all. Both are usually covered by a standard buildings policy, though subsidence often carries a higher excess, so check the detail.

Non-standard construction

Most homes are of standard construction, meaning brick walls and a tiled or slated roof. Properties that differ, such as timber-framed, thatched, listed or flat-roofed homes, are considered non-standard and can be harder and more expensive to insure, because they may need specialist repair. If your home is non-standard, you may get a better deal from an insurer that specialises in such properties, so it is worth seeking one out rather than relying on a mainstream quote.

Keeping your buildings cover valid

Buildings insurance covers sudden, accidental damage, not the consequences of neglect, so keeping your home maintained is part of keeping your cover valid. Fix small problems before they become big ones, keep the roof and gutters in good order, and address damp or leaks promptly. You should also tell your insurer about material changes, such as an extension or a change in how the property is used, since failing to do so could affect a future claim.

In short

Buildings insurance covers the structure of your home and its permanent fixtures against insured events like fire, storm, flood and subsidence. The key figure is the rebuild cost, not the market value, and under-insuring can see a claim cut, so work the figure out accurately. Mortgage lenders require it, leasehold flats are often covered by the freeholder, and the average buildings-only premium was around £306 in early 2026.

Where to get help and next steps

Pair this with our guide to contents insurance to cover your belongings too, and read how premiums are calculated to understand your price.