Any damage or loss of the actual structure and fittings
of your home is covered by Building
Insurance.
Most
of the time one has to borrow 4 or 5 times your yearly
income to buy a home. Buying a home is indeed an enormous
risk and you are always in enormous pressure to pay back
the borrowed amount. Life can be terrible if a calamity strikes
during such period and damages your home. Buildings insurance
is your way out of this crisis if you had taken it in time.
It covers everything from structure, fixtures and fittings
in your home. In an unfortunate event, such as a fire, or
a flood, or subsistence, then your insurance policy will
come to your rescue.
Although
you are not covered for the market value of your home it
will at least get you back where you had started.
You will be glad to know that buildings insurance is compulsory
with a mortgage.
You need not buy buildings insurance from your lender neither
they can force you to do so. It wont
be wrong for you to expect that some mortgage discounts
will be linked to taking their recommended home insurance.
It’s
the rebuilding cost of your home and its location that
determines your building insurance premiums. For example
if it is on a flood plain or in an area where subsistence
is rife then you will have difficult time getting insurance
at all.
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