When to Arrange Buildings Insurance During the Home Buying Process

Buying a home is a major investment. Protecting it properly starts earlier than many people realise. From the moment you exchange contracts, you're legally responsible for the structure of your new property. That’s where buildings insurance comes in. While most policies cover the basics, some properties require more comprehensive protection. For example, rivr offers buildings insurance with up to £3 million in rebuild cover, along with extended limits for outbuildings and additional features.

This guide explains what buildings insurance typically covers, when to arrange it, and how to choose the right level of cover for your home.

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What is buildings insurance?

Buildings insurance covers the structure of your home and its permanent fixtures, such as walls, roof, floors, fitted kitchens, and bathroom suites. It protects against risks like fire, flood, storm, and escape of water.

Optional extras can be added for broader protection. These may include accidental damage, legal expenses for home-related disputes (such as boundary issues or faulty workmanship), and home emergency assistance.

Buildings insurance typically covers permanent floor coverings like tiles or fitted wood, but carpets and rugs fall under contents insurance.

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When should you arrange buildings insurance?

You should arrange buildings insurance as soon as you exchange contracts, even if you have not yet moved in. From this point onward, you are legally responsible for the property, and any damage or loss becomes your liability. Mortgage lenders typically require proof of buildings insurance before releasing funds, as the property acts as security for the loan. Having cover in place also protects you during the period between exchange and completion, when risks such as fire, escape of water, or storm damage can still occur. If something goes wrong and you are uninsured, you could face significant repair costs and possibly legal fees, even before you take possession.

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What does buildings insurance cover?

Buildings insurance covers the full cost to rebuild your home if it’s damaged or destroyed. This includes structural repairs and permanent fixtures, subject to your policy limits. extreme weather damage

It typically covers:

• Structure: Roof, walls, floors, doors, and windows
• Permanent fixtures: Fitted kitchens, bathroom suites, and built-in wardrobes
  Note: Permanent floor coverings like tiles or fitted wood are also typically included under buildings cover, while carpets and rugs are usually classed as contents‍
• Flooring covered: Includes permanent floor coverings like tiles or laminate (check if carpets are included)‍
• Outbuildings: Garages, sheds, and greenhouses (policy dependent)‍
• Alternative accommodation: Costs if your home becomes uninhabitable‍
• Liability cover: Protection if someone is injured on your property and you’re found legally responsible

Common perils included:

• Fire, explosion, lightning, and smoke
• Damage from extreme weather events, including storms and flooding
• Theft or attempted theft
• Vandalism and malicious damage
• Impact by vehicles, falling trees, or aircraft
• Escape of water from plumbing or appliances
• Subsidence, subject to excess and exclusions

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What isn’t covered by buildings insurance?

Most buildings insurance policies exclude damage resulting from neglect, long-term issues, or unoccupied periods. Common exclusions include:

• General wear and tear or gradual deterioration
• Damage caused by poor maintenance (e.g. missing roof tiles or blocked gutters)
• Mechanical or electrical breakdowns (e.g. boiler failure)
• Damage if the property is left unoccupied for extended periods (usually more than 30–60 days)
• Deliberate or intentional damage by you or someone living in the home
• Damage to fences, gates, or hedges (varies by provider)
• Damage caused by paying guests or tenants (depending on your policy)
• Frost damage not resulting in an escape of water (varies by provider)
• Scorching or tobacco burns without flames (in some cases)

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Why is buildings insurance essential when buying a home?

Buildings insurance isn’t a legal requirement for all homeowners, but it’s almost always a condition set by mortgage lenders. The reason is simple: your home is their security.

If disaster strikes and your property is damaged or destroyed, your lender wants to know that it can be repaired or rebuilt, protecting their investment and yours.

Even if you’re buying your home outright, not having buildings insurance could leave you facing enormous financial hardship if events like fire, flood, or subsidence damage your home.

In high-risk areas, such as flood zones or places prone to subsidence, the risk of costly damage is even greater, making buildings insurance a must-have.

Key reasons to get buildings insurance

• Mortgage lender requirements: Most lenders insist on it before releasing funds.
• Financial protection: Covers the cost of rebuilding or repairing your home after major damage.
• Peace of mind: Protects you from unexpected disasters and liabilities.

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How does buildings insurance protect your investment during and after purchase?

During the purchase process

You should arrange buildings insurance as soon as you exchange contracts. From that point, you become legally responsible for the property. If damage occurs before completion, such as flooding, fire, or escape of water, you are liable for the repairs. Having cover in place protects you during this critical period.

After purchase

Once you move in, buildings insurance continues to protect your home. It covers the cost of repairs or a full rebuild if the property is damaged by fire, storms, flooding, vandalism, or subsidence. This includes the structure itself, such as walls, roof, and floors, along with permanent fixtures like fitted kitchens and bathrooms. Many policies also include garages, sheds, fences, and boundary walls.

Additional protection‍

Some policies provide cover for alternative accommodation if your home becomes uninhabitable. Liability protection is often included in case someone is injured on your property. Optional extras such as accidental damage, legal expenses, and home emergency assistance can be added for broader protection. Some policies also include emergency access cover if damage is caused by emergency services. For landlords or owners of unusual properties, there are specialist options including landlord insurance and non standard home insurance.

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Real-life case studies of claims and how insurance helped

Case study 1: Escape of water in London

A family in West London found their home flooded when a pipe burst. Their buildings insurance provider sorted alternative accommodation and arranged repairs, keeping the family safe and reducing stress during a difficult time.

Case study 2: Subsidence in Kirkcaldy

A couple discovered subsidence in their home, making it unsafe to live in. Their insurer quickly organised temporary housing while the property was repaired, giving them stability when they needed it most.

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How do you choose the right buildings insurance?

Calculate the rebuild cost

Ensure your sum insured accurately reflects the full cost to rebuild your home, not its market value. This includes labour, materials, and professional fees.

Check policy details

Review what is included and excluded in your policy. Some standard policies may not include cover for accidental damage, flooding, or subsidence without optional add-ons.

Tell your insurer if your home will be unoccupied

This is essential if you are buying a new build or your property will be vacant for a period, as cover may be limited during unoccupied periods.

Compare policies

Consider optional extras like home emergency assistance and look for providers with a straightforward claims process, especially if you live in a high-risk area or are insuring a complex property.

Select specialist cover for high-value homes

Standard buildings insurance may not offer enough protection for homes with a rebuild cost exceeding £1 million, or those featuring bespoke materials, non-standard construction, or listed status. Underinsurance is a common risk in these cases. Rivr addresses this with tailored buildings insurance offering up to £3 million in rebuild cover, enhanced limits for outbuildings, and flexible protection designed for architecturally distinctive, high-value properties.

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7 Ways to save money on buildings insurance

1. Shop around for quotes

Use price comparison websites or a trusted insurance broker to compare buildings insurance quotes across multiple providers. Ensure the policies offer equivalent levels of cover so you’re comparing like for like.

2. Improve your home security

Installing British Standard locks, burglar alarms, or smart security systems can reduce your premium. Some insurers offer discounts for additional security measures that reduce the risk of theft or damage.

3. Increase your voluntary excess

Agreeing to a higher voluntary excess (the amount you pay towards a claim) can lower your monthly or annual premium. Just make sure the excess is affordable if you ever need to claim.

4. Bundle your policies

Many insurers offer a discount if you take out buildings and contents insurance together, or if you also insure your car or other items with them.

5. Maintain a no-claims record

If you haven’t made a recent claim, your insurer may offer a no-claims discount. Maintaining a clean record over time helps reduce premiums and shows you're a lower-risk policyholder.

6. Look for multi-policy or loyalty discounts

Some providers offer ongoing discounts to long-term customers or those with multiple active policies. It’s worth asking your insurer directly when renewing.

7. Avoid overinsuring your home

Make sure your rebuild cost estimate is accurate. Overestimating can lead to higher premiums. Use the ABI’s rebuild calculator or seek guidance from your mortgage valuation.

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What should I look for in a buildings insurance policy?

• Cover for the main structure and permanent fixtures and fittings.
• Cover for outbuildings, garages, fences, and boundary walls
• Alternative accommodation if your home’s uninhabitable
• Liability protection
• Optional extras like accidental damage, legal expenses, and home emergency assistance

Rivr tip: Swimming pools may be covered if they are permanent structures, but check your policy for details.

What if you live in a leasehold flat?

If you own a leasehold flat, the freeholder or management company may already have buildings insurance in place. Check your lease to see what’s covered and whether you need to arrange your own cover for internal fixtures or improvements.

Key points for leasehold flat owners:

• Check your lease: It should specify who is responsible for buildings insurance.
• Review the policy: Make sure the cover is adequate and includes all necessary protections.
• Consider contents insurance: Even if buildings insurance is handled by the freeholder, you’ll still need contents cover for your belongings.

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What’s the difference between buildings and contents insurance?

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How do you make a claim on your buildings insurance?

If you need to claim, contact your insurer as soon as possible. They’ll guide you through the process, which usually involves:

• Reporting the incident
• Providing evidence (photos, receipts, etc.)
• Provide all necessary personal details
• Waiting for an assessment
• Arranging repairs or alternative accommodation if needed

Tips for making a successful claim

• Act quickly: Report the incident as soon as possible.
• Gather evidence: Take photos and keep receipts for any emergency repairs.
• Keep records: Document all communication with your insurer.
• Follow up: Check in regularly to ensure your claim is progressing.

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Specialist cover for non-standard homes and past claims

If your home has unusual features, or if you've made previous claims, standard buildings insurance might not be enough. Properties such as listed buildings, thatched cottages, or homes built with non-standard materials often need specialist cover. These homes can be more expensive to rebuild, and insurers may apply higher premiums or stricter terms. Always tell your insurer about your property type and claims history so they can provide suitable protection.

rivr offers tailored buildings insurance for high-value homes and non-standard properties, with flexible cover designed to reflect the true rebuild cost and unique risks of each home.

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Glossary of insurance terms

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Checklist for new home buyers

Use this checklist to make sure your property is properly protected from day one:

• Arrange buildings insurance as soon as you exchange contracts
• Calculate the rebuild cost, not the market value
• Check what’s included and excluded in your policy
• Tell your insurer if your home will be unoccupied
• Compare quotes to find the best deal
• Consider optional extras like accidental damage or home emergency cover
• Check your lease if you’re buying a leasehold flat
• Review the policy regularly to ensure it meets your needs

How to calculate your rebuild cost

Your rebuild cost is the amount it would take to completely rebuild your home, including labour and materials, but not the value of the land. This figure is essential for setting the right level of buildings insurance.

To estimate it:

• Use the ABI’s free rebuild calculator, based on RICS data
• Check your mortgage valuation if the property was recently bought
• Refer to your policy schedule for the current sum insured
• Speak with your mortgage provider or surveyor if unsure

Note: The rebuild cost is usually lower than the market value. Underinsuring can leave you with a financial shortfall in the event of a claim.

What to do if your property is in a flood risk area

If you live in an area at risk of flooding, buildings insurance is especially important. Some policies include flood cover as standard, but others may exclude it or charge a higher premium. The Flood Re scheme helps homeowners in high-risk areas find affordable insurance from participating providers.

Steps to take:

• Check your risk using the Environment Agency’s flood maps.
• Confirm your policy includes flood cover
• Consider resilience measures such as flood barriers
• Keep records of any flood protection work done

How to protect your home from subsidence

Subsidence occurs when the ground beneath your property shifts, often due to clay soils or tree roots. It can cause serious structural issues. Most buildings insurance policies include cover for subsidence, but this usually comes with a higher excess and some exclusions.

If you notice cracks, sticking doors, or uneven floors, report the issue to your insurer. Take clear photos and keep any records of inspections or repairs. Your insurer will usually send a specialist to assess the situation before confirming cover.

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What is alternative accommodation cover?

If your home becomes uninhabitable due to an insured event, your buildings insurance may cover the cost of temporary accommodation. This allows you and your household to stay elsewhere while repairs are carried out.

Cover is usually capped as a percentage of the total sum insured, so check that it matches your needs. Make sure to review it if your household has grown or your living requirements have changed.

When and why to review your buildings insurance

You should review your buildings insurance each year, or whenever your circumstances change. If you’ve extended your property, moved into a flood zone, or changed how your home is used, your cover may no longer be suitable.

Look out for:

• Changes in rebuild cost after renovations
• New risks in your area, such as flooding
• Updated policy terms from your provider
• Occupancy changes that affect your cover

Keeping your policy up to date reduces the risk of underinsurance and ensures you are not paying for protection you no longer need.

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Buildings insurance trends and future developments in 2025

Buildings insurance is adapting to new risks and expectations. More UK homes now fall within flood risk zones, and insurers are updating policies to reflect this. Rebuild cost estimates are also rising due to updated building standards and construction costs.

Digital claims systems are becoming the norm, helping customers report damage and track progress more efficiently. Insurers are also offering more personalised cover, using detailed property data to tailor protection based on location, build type, and risk profile.

Climate resilience is another growing focus. Some policies now support homeowners who invest in preventative measures like flood barriers or improved drainage, which may help reduce future premiums.

rivr is leading this shift, offering high-value home insurance with digital claims, tailored risk assessments, and flexible cover for complex or non-standard properties.

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Conclusion

Buildings insurance is essential for safeguarding your investment from the moment you exchange contracts. Choosing the right coverage protects against major risks like fire, flood, and subsidence, and meets mortgage requirements. Regularly review and update your policy to ensure it continues to meet your evolving needs, giving you lasting peace of mind.

Online resources

For reliable guidance on buildings insurance, visit the Association of British Insurers (ABI) page on buildings insurance. You can also consult the government-backed MoneyHelper service, which provides impartial, trusted advice about home insurance.

rivr: protect your home with confidence

Buying a house is one of life’s biggest investments. Make sure it’s fully protected from day one. With Rivr Cover, you’ll get tailored buildings insurance that fits your high-value property and lifestyle.

Explore our combined home insurance, contents insurance, and buildings insurance options to find the right protection for your needs.

Contact our team to see how we can protect what matters.

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