Whether buying buildings insurance for the first time or renewing an existing policy, no one wants to pay over the odds – so how much does it cost and how is it calculated?
It’s also important to know exactly what your buildings insurance does and does not cover so you have the right sort of protection against damage to your home that best suits your needs. Here are the answers to all your questions on this topic.
EASY AS HACK
Buildings insurance is calculated using what it would cost to rebuild your home. This is not the same as your home’s market value.
At a glance
Reduce buildings insurance cost by:
- Investigating if there’s a discount for getting buildings and contents insurance with the same insurer.
- Avoiding add-ons you don’t need.
- Increasing your excess if you can afford it.
- Improving home security.
How much does buildings insurance cost?
Shopping around can be really helpful and is encouraged, as it allows you to compare options and make sure you’re choosing a product that suits your needs at a price that feels right for you. The figures from the Association of British Insurers (ABI) have put the average cost of buildings-only insurance at £312 in the last quarter of 20251.
The cost of buildings insurance will vary across the UK and be based largely on estimated rebuild costs for your home. This is not the same as your home’s market value. See our guide to estimated rebuild costs.
How is buildings insurance calculated?
Insurers use various factors to determine the cost of your buildings insurance and these may include:
- Type of property – whether it’s a house, flat or bungalow can make a difference. For example, some insurers see bungalows as having an increased risk of burglary because they’re on ground level. They also have a larger roof to living space ratio, making rebuild costs more expensive. The style of home affects rebuild costs too as some may require non-standard construction materials which drive costs up (i.e. flats and maisonettes are constructed differently to houses, therefore a surveyor may be required for an accurate valuation).
- Size of property/number of bedrooms – typically, the bigger your home is, the higher the rebuild cost, which has a knock-on effect on insurance cost. Sometimes this will be calculated using the number of bedrooms your home has.
- Age of property – older homes may need more repairs in case of an unforseeable event because age can increase both the risk and the cost of damage. They’re also sometimes built using materials that are now difficult to source or require specialist building techniques to repair.
- Construction materials – whether your home is built from brick, stone or timber can have an impact on buildings insurance cost. Stone tends to be the more costly.
- Claims history – the more times you claim, the more your insurance cost could rise because insurers will see you as a bigger risk.
- Location – insurance costs could be higher if you live close to a river or other area with a high risk of flooding. If this is a concern for you, look into Flood Re – an initiative aimed at making the flood cover part of insurance policies more affordable. Insurers will also see your home as a greater insurance risk if your neighbourhood has a high crime rate.
- Built-in fittings and outdoor buildings – remember that anything permanently attached to the physical structure of your home, such as built-in wardrobes, fitted kitchens, bathroom suites and integrated appliances, is part of the building insurance cost calculation – as are outbuildings like sheds and garages.
Find out more about Ageas buildings insurance.
How do you work out the rebuild value of your home
You can go through a professional residential property surveyor to work out the rebuild value of your home or you can work it out for yourself.
Official directories for surveyors include the RICS Find a Surveyor service, which lists regulated chartered surveyors, and the RICS member database.
If you’re arranging buildings insurance yourself, there are online tools to help, such as the Association of British Insurers' free rebuild cost calculator.
Remember, you’re calculating your home’s rebuild cost – the price of reconstructing it from scratch, including building materials and labour – not the market value.
How to reduce the cost of buildings insurance
Compare quotes from different insurers by getting in touch with insurers directly, speaking to an insurance broker or using a price comparison website.
Tips from the ABI2 on reducing the cost of buildings insurance include:
- Paying your premium annually rather than monthly can work out cheaper due to the interest rates applied when opting for monthly payments.
- Some insurers will offer a discount if you arrange both your building insurance and contents insurance with them.
- Avoid add-ons you don’t need – check you’re only paying for the cover you need.
- Increase your excess – but only if you can afford to pay it.
- Improve your home security – burglar alarmsand lights on timers can potentially lead to insurance cost reductions.
- Build up your no-claims discount – some insurers offer discounts if you don’t make a claim over a period of time, so take measures to protect your building from being damaged by events such as fire, leaks and storms.
What does buildings insurance cover?
Buildings insurance covers the physical structure of your home and permanent fixtures, including:
- Roof, walls, floors and windows.
- Built-in kitchens and bathroom suites.
- Pipes and drains.
- Garages, sheds and other outbuildings.
An Ageas policy for buildings insurance protects you against a number of events, including the following:
- Fire and earthquakes – damage caused by fire, smoke, explosion, lightning or by an earthquake. It won’t cover claims caused by scorching, singeing or melting.
- Storms – damage caused by strong winds of more than 55mph or extreme rain, snow or hail. See the policy document for the definition of the extreme weather events and any exclusions.
- Flooding – damage to your buildings caused by water that comes suddenly into your buildings from outside and which enters at the ground floor level or below. It won’t cover damage to gates, fences, swmming pool and hot tub covers.
- Leaks or freezing water – damage caused by water or oil leaking from your storage tanks, pipes or heating system and water leaking from your drains. Damage caused by water freezing within any of these is also covered, as is damage caused by water leaking from or freezing in home appliances, fish tanks or water beds. For full list of what’s covered and exclusions check your policy document.
- Theft – damage caused to your buildings as a result of a theft or attempted theft including any fixtures or fittings, such as copper pipes, that are stolen. Exclusions apply.
- Vandalism to your buildings. Exclusions apply.
- Riots – damage to your buildings by a riot. You must report the damage to Ageas and the police within seven days.
- Subsidence, ground heave or landslip – subsidence is the downward movement of the ground beneath your buildings. See the policy document for definitions of ground heave, landslip and any exclusions.
- Damage to your property by moving or falling objects – including vehicles, falling trees and aircrafts. Exclusions apply.
Find out more about the difference between buildings insurance and contents insurance.
FAQs
Does the size of property affect the price of buildings insurance?
Typically, yes, the bigger the building the more expensive the rebuild costs, which has a knock-on effect on buildings insurance.
Are older buildings more expensive to insure?
Yes. Generally, older buildings are more expensive to insure because they tend to have more unique features, or non-standard materials that are expensive to replace and may require specialised labour.
Do you legally need buildings insurance?
Buildings insurance is not a legal requirement but as the owner of a home you are responsible for the property and having insurance in place offers protection against the cost of any unforeseen damage to it.
If you need to borrow money to buy a home, lenders will almost always insist on buildings insurance as a condition of your mortgage.3
Find out more about Ageas home insurance.
Sources
[3] https://www.citizensadvice.org.uk/consumer/insurance/types-of-insurance/buildings-insurance/
