How much buildings insurance do I need?

Buildings insurance policies vary widely, so this is not an exhaustive list of what you should look out for. But it should point you in the direction of some clauses that you may not be aware of. 

Remember, if you’re shopping around for buildings insurance, always check the excess levels that the quote is based on and ead the individual policy documents so you know what you are and aren’t covered for. 

• Trace and access. Most policies include this clause, which means the insurance company will pay for the cost of finding the source of the problem and not just the resulting damage. This is important. If, for example, an underground pipe in your kitchen developed a leak, without ‘trace and access’ you would have to pay for the cost of a plumber digging up your kitchen floor out of your own pocket. Some insurance policies have quite low limits on trace and access (as little as £1,000 – £2,000). Try and get a policy that will pay at least £5,000 for a trace and access claim. 
• Alternative accommodation. If your property is seriously damaged, for example by fire or flood, you may need to live elsewhere for several months whilst repairs are carried out. Some insurers have relatively low limits on the amount they will pay out for alternative accommodation. I’ve just had a look at some insurers’ websites and the amounts vary from £20,000 to £100,000 and above. You might be tempted to save money on alternative accommodation costs, but don’t go for an unrealistically low amount. If your home was badly flooded, you could spend well over a year living somewhere else. 
• Matching items. This clause is more important when it comes to contents insurance, but it’s still relevant if you’re looking to buy buildings cover. If, for example, you were to damage your bath, but not the basin or toilet (or other bathroom fittings that might make up the set), some policies would only pay for the bath to be replaced and not the other items; even if the style had been discontinued so you couldn’t find one that matched. Some policies will sell ‘matching of items’ cover separately. If not, check the policy documents to make sure you’d be covered or ask your broker or insurance company how they cover matching items. 
• How they handle claims. It’s difficult to get direct information about how a company handles claims, although an insurance broker should be able to tell you. You can find out if an insurer has a high number of unresolved complaints to the Financial Ombudsman Service, which is a free adjudication service for consumers.  You can also find out if the Financial Ombudsman Service found in favour of the consumer most of the time (which might suggest the company was trying to wriggle out of complaints). It publishes and updates complaints figures every six months.