All lenders insist on Buildings Insurance if any property is secured against a loan. If anything adverse happens to the property (like it being burnt down), the same property can be rebuilt from the proceeds of the insurance claim. And if your property is mortgage free and a similar devastation occurs to it, you will still be protected by the insurance policy and will be able to rebuild your property from the proceeds of your claim.
All Buildings Insurances are taken out so as to have a peace of mind against misfortunes that you hope will never occur. This kind of insurance offers protection against structural damages e.g. roofs, walls, floors, ceilings, windows and doors. The causes of structural damages specified in policies are usually by fire, detonation, burglary or attempted burglary, malicious damage /vandalism, natural calamities like lightning, flooding, storms, earthquakes, subsidence and falling trees etc. Also included in the policies are damages on outdoor properties such as gates, fences and railings.
But do be aware that not all policies cover all the above mentioned potential damages and each insurer will have its own exclusion peculiar to that particular policy. Should you require any specific cover which has not been detailed in the policy then you can obtain one by paying an additional premium.
In the unfortunate event of you not being able to reside in your property until it has been deemed safe and secure for you to live in, you will need to ensure that your Buildings Insurance policy covers you for a suitable alternative accommodation while works are being carried out on your property. Also make sure that your policy covers you for any associated architects’ or surveyor’s fees.