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Definition of Building Insurance

Building Insurance is a type of insurance that protects against structural damage of buildings named on the insurance policy. It is important to insure your buildings for the full cost of reconstruction otherwise any claim payment may be reduced. Mind that the full cost of reconstruction is the cost of rebuilding your home but not the market value. It is better to arrange the coverage on a replacement cost basis.

The building Insurance coverage may include building structures, attached additions and extensions, fixtures, machinery and equipment permanently attached, and property of the museum used for the maintenance and service of the building.

Building Insurance policies usually offer protection from severe weather (storms, lightning and floods), theft and vandalism, fire, smoke and explosions, subsidence, burst pipes, water or oil leakage, impact from vehicles, falling trees, aircraft, masts, aerials. Coverage should be arranged for standard "all risk" perils.

There are various kinds of packages for Building Insurance and most of them are customizable. However, you should keep in mind that there may be certain exclusions. They can be endorsed onto the policy only for an additional premium.