What Does Buildings Insurance Cover?
Buildings insurance protects the physical structure of your home from a range of risks. If your property is damaged by an insured event, buildings insurance will pay for the cost of repair or — in extreme cases — a complete rebuild. Crucially, it covers the rebuild cost, not the market value of your home.
Typically Covered
Walls, roof, floors, ceilings, doors, windows, fitted kitchens, fitted bathrooms, garages, outbuildings, fences, paths, driveways, underground pipes and cables, swimming pools
Typically NOT Covered
Contents and personal belongings, general wear and tear, gradual deterioration, some flood damage (check policy), pest infestation, damage caused by poor workmanship
Typical Events Covered
- Fire, explosion, and lightning
- Storm and wind damage
- Escape of water from burst pipes
- Theft or attempted theft
- Subsidence (check for exclusions)
- Falling trees or aircraft
- Vehicle collision with the building
How Much Does Buildings Insurance Cost?
The average cost of buildings insurance in the UK is between £200 and £400 per year for a standard property, according to ABI data. However, costs vary considerably depending on a range of factors specific to your property and circumstances.
Factors Affecting Your Premium
Rebuild Cost
The higher the rebuild value, the higher the premium. Getting this right is critical — under-insuring means you may not receive enough in a claim.
Location
Areas with higher crime rates, subsidence risk, or flood risk attract higher premiums. Your postcode is one of the most important rating factors.
Property Type
Detached houses generally cost more to insure than terraced properties. Non-standard construction (e.g. thatched roofs, timber frames) costs significantly more.
Claims History
Previous claims — even those made with a different insurer — typically increase your premium. Most insurers ask about claims in the last 5 years.
Voluntary Excess
Choosing a higher voluntary excess (the amount you pay first in any claim) usually reduces your premium, sometimes significantly.
Security Features
Approved alarms, deadlocks, and window locks can reduce your premium. Some insurers require minimum standards set by the Association of British Insurers (ABI).
Average Rebuild Costs (BCIS Guide 2025)
| Property Type | Approx. Rebuild Cost per m² |
|---|---|
| Standard terraced/semi-detached | £1,500 – £1,900/m² |
| Standard detached house | £1,700 – £2,100/m² |
| Flat / apartment | £1,400 – £1,800/m² |
| High-spec or contemporary build | £2,100 – £2,500/m² |
| Listed/period property | £2,500 – £3,500+/m² |
| Thatched property | £3,000 – £4,500+/m² |
Special Property Situations
Listed Buildings
If your home is a listed building (Grade I, II* or II), standard insurance is unlikely to be sufficient. Listed buildings require specialist insurance because any repair work must use traditional materials and techniques, which are significantly more expensive. The rebuild cost can be many times higher than an equivalent modern property. Always use an insurer that specialises in listed buildings.
Leasehold Properties (Flats)
If you own a leasehold flat, buildings insurance is almost always the responsibility of the freeholder, not you. You will usually pay for it through your service charge. You can ask to see the buildings insurance certificate at any time. You would only need to arrange buildings insurance yourself if your lease specifically requires it or if you are a share-of-freehold owner.
Subsidence Risk
Subsidence — where the ground beneath a property sinks — is a significant risk in some parts of the UK, particularly in areas with clay soil or former mining activity. Properties with a history of subsidence can be very difficult to insure. If you are buying a property, commission a full structural survey to check for signs of movement. Specialist subsidence insurers exist for affected properties.
Flood Risk
Check the Environment Agency's Flood Map for Planning to see your property's flood risk zone. High-risk properties can struggle to find affordable buildings insurance. The Flood Re scheme, run jointly by the government and the insurance industry, helps by reinsuring flood risk for eligible properties. However, Flood Re does not cover properties built after 1 January 2009, commercial properties, or social housing.
Home Working and Business Use
Working from home may affect your buildings insurance, particularly if you see clients at your property or store business stock at home. Always inform your insurer if you use your home for business purposes. Some standard home policies will cover basic home working (using a laptop for office work), but others may require you to add a home business extension or take out a separate policy.
Buildings Insurance and Mortgages
If you have a mortgage, your lender will almost certainly require you to have buildings insurance in place as a condition of the mortgage. While your lender cannot force you to buy insurance from them, they can require evidence of adequate cover. Shopping around via comparison sites or an insurance broker typically gets a much better price than accepting the lender's own product.