What Happens If My Building Insurance Policy Does Not Cover the Cost of My Claim? When you obtain a new home your mortgage provider will almost certainly insist you buy buildings insurance before them lending you the money. Many will, in fact, give you buildings insurance alongside the mortgage product they provide you with. But this will likely not always be the ideal deal, especially when you are going to want to take out contents insurance too. Although many people may never make a claim on their buildings cover it is regarded as essential. So, what sort of cover are you looking to sign up for and the way would it be built to help you? In basic terms buildings insurance cover is offered to get a specific sum of cash. This is in line with the expense of rebuilding your house over completely from scratch. A common misconception from the UK Home Insurance market is that there is a law set up saying somebody should have buildings cover when they are getting a house. While needless to say this is sensible, it isnt technically a legitimate requirement - there exists merely a commonplace condition of an mortgage company supplying home financing. This makes the standard insurance cheaper given that they dont have to utilize it to pay for contents insurance uk every little problem or issue that develops. This way the business enterprise doesnt need to spend high premiums and instead can pay low monthly insurance bills as well as putting aside the quantity of monies they could afford for the self-insurance. Buildings Insurance - This type of insurance covers the structure of the building, insuring it for your expense of repair or rebuild against most kinds of risks, for instance, flood or fire. Having buildings insurance helps you to provide you with peace of mind that the investment will be safe in years into the future. In the event of unforeseen disasters at your property, being uninsured could pose an expensive danger.