a guide to buildings insurance
What is buildings insurance?
Buildings insurance is designed to cover the rebuilding cost should your home suffer
any damage to its structure. Damage could be caused by a variety of different factors,
including fire, burst pipes, water damage and vandalism, whilst some policies may
also cover accidental damage. As well as the structure, buildings insurance may
cover permanent fixtures and fittings.
Having the right buildings insurance cover in place is of vital importance as it
should cover the cost to rebuild the main elements of your property, including:
walls, floors, ceiling, roof, windows and doors. Garages and other outdoor buildings
can be included as well.
Each year, the Association of British Insurers
produces guidelines on rebuilding costs. It is worth referring to these when taking
out or renewing building insurance to help you assess the cover you need.
What happens if I don’t have buildings insurance?
It remains your responsibility to insure your property. On behalf of your lender,
each year, we will write to you requesting that you send details of your own buildings
insurance to us. Should you not provide evidence that you have buildings insurance
in place by the time your policy is due for renewal, your lender may put in place
alternative buildings insurance until such time as you provide proof that you have
your own cover in place. You should never assume that your lender has arranged buildings
insurance on your property unless and until they confirm they have done so in writing
to you. Please note that in the event the lender does insure the property, any costs
incurred, including the insurance premium paid by your lender, will be payable by
you as a charge payable through your mortgage account. It is possible that you may
be able to arrange buildings insurance yourself for a lower cost.
Do I need buildings insurance?
It is a condition of your mortgage terms and conditions that you have adequate buildings
insurance for your property. These details must be provided to Acenden, who will
hold these details on your mortgage file on behalf of your lender.
Adequate buildings insurance must be in place at all times and needs to fulfil
the following minimum requirements:
- The policy should be arranged with an insurance company regulated by the Financial
- The policy schedule must note the interest of your mortgage lender – please contact
us if you are unsure what details to include
- The policy schedule must show the period of insurance
- The level of cover must be at least equivalent to the current reinstatement value
and be index linked
- The buildings insurance is arranged on the property your mortgage is secured on
Before making any decisions regarding your insurance needs we suggest that you seek
independent advice from an FSA authorised insurance broker or intermediary. They
will be able to suggest the level of insurance needed to protect your property fully.
You should satisfy yourself that this will be sufficient, particularly if you have
improved, or intend to improve your property.
Do I need contents insurance?
It is not a requirement of your mortgage conditions to insure the contents of your
property. However, as buildings insurance will as a rule not cover your personal
possessions, furniture or household goods that are not permanent fixtures, you may
want to do so. Again if you have any questions or want to understand what cover
is right for you, we suggest you seek independent advice from an insurance broker
Why do I need to provide my buildings insurance details to you?
Unless your buildings insurance was arranged through your lender, you need to provide
written proof that your property is protected by insurance at all times. This will
ensure that, should your property be damaged, it can be repaired and reinstated,
protecting both your interest in the property and your lender’s security.
When do I need to provide my buildings insurance details to you?
When your mortgage first completed, you would have provided details of your own
buildings insurance to your lender (unless you arranged your insurance through
the lender). Throughout the life of your mortgage you need to ensure, that if this
buildings insurance expires, renews or you simply change your insurer, these details
are then provided to us, so that we have up to date and valid buildings insurance
details for your property on file.
How do I provide my buildings insurance details to you?
Please do not send your original buildings insurance schedule to us – this should
be kept in a safe place by you. However, please note that it is vitally
important that you send a photocopy of your renewed buildings insurance schedule
to us. We request that you send a photocopy of your insurance schedule in rather
than your original documentation as we are unable to guarantee its safe return.
You can send this to us by a number of different methods:
Post: Acenden Limited, St John’s Place, Easton Street, High Wycombe, Bucks.
Email: You can send us an email using our
Fax: 020 7532 9140
For further information, please contact Customer Services.