Reasons why you need Buildings Insurance:
Some people may ask ‘why bother with the cost of building insurance’. Well it is designed to cover your financial loss arising from an insured event and even if you think you can stand a loss if there is a fire or major disaster, there are other good reasons to take out insurance.
Other people may have an interest in you being insured. Anyone who has a mortgage on the property wants to be able to collect the debt even if the premises are destroyed for example by fire. So banks, building societies and lenders usually insist you are insured. Often they try to arrange the insurance through their contacts or own insurers to be sure they get the cover they want and more cynically for the commission your premiums will earn for them. Finding your own cover may be cheaper but it must be adequate to cover the risks the lender is facing and acceptable to them.
Visitors to your building, for example like the postman who is hit on the head by a falling slate, may be able to make a claim for damages on you. A good policy will have public liability cover for such incidents so the costs fall on the insurers.
Your neighbours or beneficiaries in your will may appreciate the comfort that you have taken prudent cover to ensure any significant problem can be funded by a claim on the insurance policy.
Another issue that is worth considering is repeat problems that are individually costly but also aggregate quickly to a significant sum. If you suffer from subsidence and make a claim then there are further problems you will be grateful for ‘the strength of the insurance company around you’ as the old TV advertising slogan said.