Buildings Insurance UK (2026)
Cover for the structure of your home. Required by every UK mortgage lender. Average premium £347/year.
Buildings insurance covers the cost to rebuild your home if it's damaged or destroyed — fire, flood, storm, subsidence, impact. Every UK mortgage lender requires it. The average UK buildings-only premium is £347 per year (ABI 2025), though this varies widely: flood-risk properties, subsidence-prone postcodes (much of London and South-East), and very old or non-standard construction (thatched roof, timber frame) all push the figure higher. Below: what it covers, how much you actually need, and how to avoid overpaying.
How much cover do you need?
The critical number is rebuild cost, not market price. Rebuild cost excludes land — typically 50-70% of what the house is worth on the market. A £500k detached in the Home Counties may have a rebuild cost of £320k. Use the BCIS (Building Cost Information Service) calculator at abi.org.uk/bcis for a UK-specific estimate.
What's covered, what isn't
- Standard perils (included)
- Fire, lightning, explosion, storm, flood, earthquake, subsidence, heave, landslip, theft (damage from), vandalism, escape of water, falling trees/aerials, impact from vehicles/aircraft, riot.
- Typical excess
- £100-£500 for most claims. £1,000-£2,500 for subsidence, heave or landslip (always a separate higher excess).
- Usually excluded
- Wear and tear, damp, rot, infestation, gradual damage, deliberate damage, unoccupied property over 30-60 days, faulty workmanship.
- Optional add-ons
- Accidental damage, home emergency cover, legal expenses, boiler/heating cover, garden cover (plants and fixed items).
How to cut the cost
- Set a voluntary excess of £500 instead of £100 — saves 10-15%.
- Fit a BS 3621 approved 5-lever mortice lock, BS 7950 windows — saves 5-10%.
- Install a monitored alarm (Ajax, Yale, Verisure) — saves up to 10% at some insurers.
- Pay annually, not monthly — avoids 5-10% interest surcharge.
- Bundle with contents insurance — saves 5-15%.
- Don't claim for small amounts — one claim raises premium 20-40% for 3-5 years.
- Don't over-insure — using market price instead of rebuild cost is a very common mistake and costs you £50-£150/year.
Questions answered
Buildings insurance covers the structure of your home — walls, roof, floors, fixed installations (kitchens, bathrooms), and permanent outbuildings (garage, shed). It pays for repair or rebuild if damaged by fire, flood, storm, subsidence, impact, vandalism or theft.
Not legally, but essentially always required. Mortgage lenders insist on it as a condition of the loan. Only fully paid-off homeowners can technically skip it — and doing so leaves you exposed to total loss risks in the £200,000+ range.
Cover the full rebuild cost — not the market price. Rebuild cost is typically 50-70% of market value (it excludes land). A 1,500 sq ft semi-detached in the UK rebuilds for roughly £180,000-£280,000 depending on region and construction. Use the BCIS (Building Cost Information Service) calculator at abi.org.uk/bcis for a precise figure.
Standard perils: fire, explosion, lightning, storm, flood, earthquake, subsidence, heave, landslip, falling trees, vehicle impact, aircraft, theft (damage from), vandalism, escape of water, riot. Some policies include accidental damage by default; most treat it as an add-on.
Wear and tear, damp, rot, infestation (woodworm, wet rot), deliberate damage, unoccupied property (over 30-60 days depending on policy), faulty workmanship, gradual damage you should have spotted and repaired.
Subsidence is the ground beneath your home sinking, usually from clay-soil shrinkage in dry summers or tree roots drawing water. High-risk postcodes (much of London, South-East, parts of Midlands) see higher premiums. Standard buildings policies include subsidence but with a high excess (£1,000-£2,500) because claims are expensive.
Increase voluntary excess (£500 instead of £250 typically saves 10-15%). Install approved security (BS 3621 door locks, BS 7950 windows). Fit a monitored alarm. Join Neighbourhood Watch. Pay annually, not monthly (saves 5-10%). Buy buildings + contents from the same insurer (save 5-15%). Don't claim for small amounts — one claim raises future premiums typically 20-40%.
Buildings covers the structure. Contents covers your stuff. Combined is usually cheaper than buying each separately (5-15% bundle discount) and uses one deductible for a single incident covering both. Landlords only need buildings; tenants only need contents; owner-occupiers typically need both.
Leaseholders: usually not individually — the freeholder arranges buildings insurance for the whole block and splits the cost via service charge. Verify with your landlord/management company. Share-of-freehold and freehold flats: you typically need buildings insurance for your share.
Escape of water damage from burst pipes is usually covered. Boiler breakdown isn't — that's a separate home emergency or boiler cover plan. Drains: damage to underground drains on your property is typically covered, but blockages aren't.