How do I know what insurance cover I need?
When deciding what type of building insurance is needed, the building should first be assessed with the potential cost of damage repair and the likelihood that it will be needed. For example, a building might be located in a high-risk flood area, in which case building insurance is a sensible option.
Building insurance calculators are available for working out what the cost of insurance might be. To get a buildings insurance quote you’ll need to work out how much it’ll cost to rebuild your building or property. This can be complex as the cost will be different to the market value of the property. Liaising on building insurance is something that Centrick covers within our building and estate management services.
Building insurance for mortgages
If you have a mortgage on a property, it is very likely that you will need building insurance. Lenders will often not provide loans on properties without it. Mortgage lenders require property owners to have building insurance because as soon as there is an exchange contracts on a property, the buyer is legally responsible for the building. If you own your property outright, buildings insurance protects the investment.
Building insurance for leaseholders
Whilst building insurance isn’t a legal requirement, mortgage lenders usually insist that a policy is in place. If you are a leaseholder (for example renting or buying a flat) then it may be a condition of your lease that you have buildings insurance. However, this is usually arranged by the freeholder of the property. You can check your lease to see if buildings insurance is provided within what you have.
Building insurance for tenants
If you are a tenant of a building, generally the landlord will (or should have) building insurance covered. This is a sensible move to take because it means landlords can protect both their tenants and their investment in the property. Landlords commonly have building insurance as part of an outstanding mortgage. Tenants don’t need to organise building insurance as this is usually covered with the landlord, however it is always worth checking if you feel unsure.
The different types of building insurance
Whilst building insurance is a category in itself, there are many types of insurance that are often linked to it. These include:
- Contents insurance (items within a property)
- Landlord insurance
- Tenants insurance
- Listed building insurance
- High value home insurance
- Non-standard construction insurance
- Unoccupied home insurance
What is usually not included with building insurance
Exclusions from building insurance vary depending on the lender and your level of cover being paid for. One of the main things not covered is items within the property itself, for which a different type of insurance would be required (contents insurance).
Most commonly not included within building insurance is:
- General wear and tear
- Damage caused by property neglect
- Damage caused by insects, birds or pests
- Bad initial workmanship of a building
How we compare building insurance policies
Within our building and estate management services, Centrick liaise on building insurance to find out what is best suited to each client, get in touch today with one of our building insurance experts to find out more.
How Centrick can help with your business insurance
ARMA accredited, Centrick provide building and estate management services for developments of all sizes, including residential and mixed-use. We provide our services in multiple locations across the UK. Committed to ensuring that residents enjoy peaceful and secure living, we liaise on building insurance to make sure that the best deal is found, every time.
Designed for low density sites with more traditional requirements our core block management solutions help freeholders deliver customer focused Building and Estate Management services.
Each Centrick Elements site is managed by professional Property Managers that work with you to deliver on your objectives and your resident expectations.
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From high density buildings, managing one or many communal amenity spaces, managing resident experience and broader on site teams, taking ownership of parcel management and booking software, Signature makes even the most complex requirement simple and seamless.
Our mutual ground solutions are trusted by national developers to manage and care for the unadopted open spaces and community areas within freehold housing developments. Centrick’s cost effective, grounds maintenance services help developers provide home owning customers with a fair, balanced and accountable service charge without the headache.
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