Buildings insurance is typically a lender requirement and remains an essential safeguard even if you own your property outright. Appropriate cover protects both the structure of your home and the possessions within it against unforeseen events.
Protecting your property and income is not optional risk management, it is financial planning.
Unexpected events such as fire, flood, theft or sudden loss of income can create significant financial strain. General insurance exists to transfer those risks away from you, preserving stability when circumstances change without warning.
General insurance protects against financial risks relating to property, belongings and short-term income interruption.
The most common forms include buildings insurance, contents insurance, landlord insurance and Accident, Sickness & Unemployment (ASU) cover. Each addresses a different area of exposure, and the appropriate combination depends on how you occupy or use your property and how reliant you are on income.
Buildings insurance protects the physical structure of your property, including walls, roof and permanent fixtures, against events such as fire, flood, storm damage, escape of water and subsidence.
Most mortgage lenders require buildings insurance to be in place from exchange of contracts. If a valid claim is accepted, the insurer will cover the cost of repair or reinstatement, subject to policy limits and terms.
Optional extensions may include accidental damage or home emergency cover, depending on your requirements.
Contents insurance covers the belongings within your property, including furniture, clothing, carpets and electronic items, against risks such as theft, fire and accidental damage.
Policies can be arranged separately or combined with buildings insurance. Additional options may include cover for higher-value items or personal possessions away from the home.
Landlord insurance is designed specifically for rental properties and differs from standard residential policies.
In addition to buildings cover, it can include landlord contents (for furnished properties), loss of rent, legal expenses and property owners’ liability protection.
Standard residential policies are not suitable for tenanted properties, making specialist cover essential for landlords.
ASU policies provide short-term monthly benefits if you are unable to work due to accident, illness or redundancy.
You can select individual elements or combine them, depending on your exposure. Benefits are typically paid for a limited period per claim, often up to 12 months, and are designed as a short-term solution.
ASU differs from long-term income protection, which can provide ongoing benefits until retirement depending on policy structure. The appropriate solution depends on existing employer benefits and wider protection arrangements.
If you have a mortgage, buildings insurance is normally required by your lender. Even where no mortgage exists, appropriate cover remains essential to protect against potentially significant repair or rebuilding costs.
For landlords, specialist insurance is necessary, as standard residential policies are not designed to cover rental risks.
Where income may be disrupted by illness or redundancy, short-term protection such as ASU may also be relevant.
Ultimately, the level and type of cover required should reflect your financial exposure, property use and ability to absorb unexpected costs.
As with all insurance policies, terms, conditions and exclusions apply.
As directly authorised advisers, we are not restricted to a limited insurer panel. We assess the available options and recommend cover aligned to your needs.
General insurance refers to policies that protect property and personal assets against risks such as damage, loss or liability.
This typically includes buildings insurance, contents insurance, combined buildings and contents cover, landlord insurance and Accident, Sickness & Unemployment (ASU) policies.
Each product is designed to cover a specific financial risk rather than provide life or long-term income protection.
Buildings insurance is not a legal requirement in itself, but most mortgage lenders require it as a condition of the loan.
For leasehold properties, the freeholder or managing agent often arranges the buildings insurance for the block, with the cost recovered through service charges. This should always be checked.
Even if you own your property outright, buildings and contents insurance can help protect against potentially significant repair, rebuilding or replacement costs.
ASU policies pay a monthly benefit if redundancy criteria are met, usually capped at a percentage of your gross income and subject to policy limits.
Benefits are typically paid for a defined period, often up to 12 months.
Self-employed applicants can usually access accident and sickness cover. Unemployment cover may be available, but stricter eligibility criteria apply.
Some contents policies include limited “personal possessions” cover for items temporarily taken outside the home, subject to policy terms and value limits.
Higher-value item, such as jewellery, watches or specialist equipment, may need to be individually specified to ensure full cover.
The level of protection varies between insurers, so it’s important to check the policy wording and limits carefully.
For mortgaged purchases, buildings insurance is usually required from exchange of contracts, not completion. This is because you become legally responsible for the property at exchange.
Buildings insurance should reflect the property’s rebuild cost, not its market value.
The rebuild cost is often stated in your mortgage valuation or can be estimated using recognised rebuilding cost calculators. Underinsuring a property can reduce claim payments.
Yes. Standard residential buildings and contents policies are not suitable for tenanted properties.
Landlord insurance is designed to reflect the different risks associated with renting, including property owner liability and potential loss of rent.
