What buildings insurance covers, in plain English
Buildings insurance covers the structure of your home: the walls, roof and floors, plus the permanent fixtures that would stay behind if you moved out. Contents insurance covers the things you would take with you. Plenty of us set up buildings insurance once, alongside the house purchase, and have not looked at it since.
Like other home insurance, buildings insurance is generally a policy of indemnity. The Financial Ombudsman Service describes that as aiming to put the policyholder back in the position they were in just before the loss or damage happened. An insurer can do that by repairing the damage, replacing something lost or damaged, or paying cash to cover the cost of repair or replacement.
What it pays for depends on the list of insured events in your policy, and on the exclusions that sit underneath them. That list is the bit worth reading.
What does buildings insurance usually cover?
Buildings insurance usually covers damage caused by a list of named events. The exact list varies by policy. The ones that come up most in the Financial Ombudsman’s guidance on home and buildings insurance are:
- Storm damage. The Ombudsman says buildings insurance policies usually cover financial loss caused by storm damage, and that a storm generally involves violent winds, usually accompanied by rain, hail or snow.
- Flood, which the Ombudsman gives as an example of an insured event, along with theft and accidental damage.
- Subsidence, heave and landslip, where the ground under the house moves. Subsidence is when the ground beneath a building sinks, pulling the foundations down with it, often after long dry spells or because of trees drawing water from the soil.
- Damage to underground pipes, drains, cables and tanks, which the Ombudsman says most buildings policies include and which is one of the complaint areas it handles.
Two things on that list need a caveat. Accidental damage, such as putting a foot through the ceiling while in the loft, is not usually a standard part of a policy: it is more often an optional extra. The Ombudsman sees complaints both from people who paid for it and had a claim declined, and from people who did not buy it and wish they had.
The other is escape of water, which is what you have if a pipe, tank or appliance leaks. It is one of the most common and most expensive things that goes wrong in a house, but it is not a given. The Ombudsman refers to cover under the escape of water section of a policy, which tells you it is usually its own section rather than part of the standard flood or storm cover. Check whether your policy has one, and what it pays for, rather than assuming a burst pipe is covered because flooding is.
Subsidence has been in the news this year. Our report on home insurance claims for subsidence covers the latest figures from the insurance industry.
What does buildings insurance not cover?
Buildings insurance does not cover things that happen slowly. Gradual damage, such as mould or a roof that has deteriorated over years, is a common exclusion, and the Ombudsman notes that insurers sometimes decline storm claims where they think the damage came from wear and tear or gradual deterioration rather than a single storm.
Wear and tear is excluded too, even under accidental damage cover. If an insurer relies on an exclusion, the Ombudsman says the onus is on the insurer to show that the exclusion applies. Its own example: where an insurer thinks a flat roof has deteriorated, it needs evidence to support that, and a report based only on an aerial photo may not be enough.
Other common gaps include settlement, the downward movement caused by soil being compressed by the weight of a building within 10 years of construction, which the Ombudsman treats as an uninsured event and distinguishes from subsidence. Policies can also have special rules for homes left unoccupied for long periods, so check yours before a long trip or an empty spell between tenants.
Key takeaways
- Buildings insurance covers the structure and fixtures; contents insurance covers your belongings.
- It pays for named events such as storm, flood and subsidence, as listed in your policy.
- Escape of water is usually its own policy section. Check it is there.
- Gradual damage and wear and tear are usually excluded.
- If your sum insured is too low, claims may not be paid in full.
Rebuild cost: the number that decides your buildings insurance
When you buy buildings insurance, you usually set a sum insured, the most the insurer will pay. For buildings, that means estimating what it would cost to rebuild your home. The Association of British Insurers puts it plainly: your building should be insured for the rebuilding cost, not what you paid for the property or its current market value. The two can be quite different.
Get it wrong and it can hurt. The Financial Ombudsman says that if the sum insured is too low, insurers may not pay claims in full, or they may not pay them at all. It also points out that the question you are asked is not always the question that matters: insurers often ask “sum insured?” or “how much cover do you need?”, when what they actually want to know is how much it would cost to rebuild your home. The Ombudsman adds that there is no single correct answer to that question, so an honest, well-researched estimate is what you are aiming for.
For a starting point, the Building Cost Information Service runs a free rebuilding cost calculator, built on BCIS data and offered through the Association of British Insurers. The ABI describes it as a free tool giving general guidance on the rebuild cost of houses and some types of flats, and you need to register before using it. BCIS is clear that a professional assessment will always be more reliable than general guidance from a calculator, and says to seek professional advice if you are in doubt.
That is the Do-Nothing Default at its most expensive. A sum insured set years ago and never checked can quietly fall behind building costs, and you only find out when you claim.
Buildings insurance, contents insurance or both?
It depends on who owns what. If you own a house, buildings insurance protects the structure and contents insurance protects your belongings. You can buy both together as combined home insurance, or buy them separately.
If you own a flat, the building is often insured under one policy covering the whole building, and the Ombudsman handles complaints about these multiple-occupancy policies separately, from both freeholders and leaseholders. Your lease should say who arranges it.
Quotes for buildings insurance vary by the home, its address, its rebuild cost, the cover you choose and your claims history, so one household’s price says little about another’s. If you are planning work on the house, our guides on cavity wall insulation and boiler cover for older boilers cover those from the energy side.
Frequently asked questions about buildings insurance
- Does buildings insurance cover subsidence?
- Many policies list subsidence, heave and landslip as insured events. Settlement in a new building is usually treated differently. Check your policy wording.
- Does buildings insurance cover a leaking roof?
- It depends on the cause. Sudden storm damage is often covered, but damage from gradual wear and tear is usually excluded.
- Does buildings insurance cover a burst pipe?
- Policies commonly have a separate escape of water section covering water that leaks or escapes from pipes, tanks or appliances. It is not automatic, so check your policy has one and what its limits and excess are.
- Is buildings insurance based on the value of my house?
- No. It is normally based on the cost of rebuilding your home, which the ABI says is not what you paid for it or its current market value.
- What happens if I am underinsured?
- If your sum insured is too low, your insurer may not pay a claim in full, or at all. Checking your rebuild cost helps avoid this.
Sources
- Financial Ombudsman Service, Home and buildings insurance, and its pages on storm damage, gradual damage, subsidence and other types of ground movement, accidental damage, damage to underground pipes, settling home insurance claims, underinsurance and multiple-occupancy buildings insurance. Supports the indemnity principle, the storm definition, the insured event examples, the subsidence, heave, landslip and settlement definitions including the 10 year settlement figure, the gradual damage and wear and tear exclusions, the burden of proof on the insurer and the flat roof example, the underinsurance consequences and the questions insurers ask, and the escape of water section reference.
- Association of British Insurers, Buildings insurance. Supports insuring for the rebuilding cost rather than the purchase price or market value.
- BCIS, Rebuild calculator, and BCIS calculator FAQs. Supports the free calculator, the registration requirement and the point that a professional assessment is more reliable than general guidance.
Checked 10 November 2026.
This guide is general information, not advice. Cover and prices vary by insurer, home and policyholder.
