Home building insurance is insurance which provides protection against the cost of repairing/rebuilding the structure of your home in the event that something unwanted should happen – fire, water/flood, storm, burst pipes, being some of the classic examples.
Unlike other types of insurance policies, home building insurance is rarely a voluntary undertaking – in most cases you home mortgage provider has insisted that you take out the policy in exchange for their having provided you with the home mortgage.
Insurance for Protecting your Home
What does home building insurance insure against? It is essential that you know, and fully comprehend, that home building insurance is insurance against the cost of rebuilding your home – it is not, nor was it ever intended to be, an insurance policy against the value of your home (against which you can take out insurance).
How are costs calculated?
Quite simply, the costs of rebuilding your home are the costs of rebuilding your home. To assess this, you are usually required to ask one of the insurance company’s assessors to come and view your home and place a value on the home. The home building insurance premium will then be based on this assessed value. Of course, included in the actually cost of rebuilding your home – i.e. the cost of the materials and labor needed in order to rebuild your home.
As you can no doubt see then, home building insurance is not a static insured sum, as both the value of your home, and the cost of part and labor to fix anything that goes wrong with the home will increase over time. But, the onus of remembering this is on you – so, you will need to calculate the rising cost of rebuilding your home.
Getting cheap home building insurance
If you are looking for home building insurance, you will note that a lot of policies are offered, and the price varies dramatically. Basically, home building insurance bought on the Internet has often proven to be the cheapest, but it has also proven to be the type of policies that have the most exemption clauses – so although the premium is cheap, the cost of the repair is the same and you may end up having to pay some money yourself. As such, ‘cheap home building insurance’ means finding a nice balance between premium payable and home contents insurance policy exemption clauses.
Second home building insurance
As a nation we are becoming richer, and enjoying the spoils of becoming richer means more and more of us these days enjoy the benefits of a holiday or vacation home. If this scenario sounds familiar, please keep in mind that if you do not live in the vacation home full time, then the home building insurance premium is likely to go up as the risk factor of anything happening is also considered to be higher.