Getting Good Building Insurance
If you have just bought a property with buildings already on it or are intending on building fixed structures, you probably need to have building insurance. Building insurance is cover against damages caused by natural disasters or people. It covers only the structure of the building itself, not the contents of the building. For that, you need contents insurance. Let us stick to building insurance for now.
Building insurance comes in a variety of forms, each of which covers different types of damage to varying levels.
The major type of building insurance which is available is loss and damage insurance. This will cover you against natural disasters and weather damage. These are also termed acts of God. This means that they are not caused by any person and are completely out of anyone’s control. The y include things like rain damage and lightning strikes as well as floods and earthquakes. You can include all the buildings on your property under one policy.
Standard accidental cover can also be included in your building insurance. This covers your external fittings and those fittings that are part of the house itself. This includes solar panels, geysers, windows and pipes and cables. These are all things that are basically fixed to the house and will not be removed if the building is sold.
Some people own multiple buildings and rent the additional space out as a source of additional income. In a case like this, building insurance is the landlord’s responsibility and not the tenants. The building insurance does not cover the tenants possessions, investing in contents insurance is the tenant’s responsibility and choice. Since tenants have a tendency to cause damage to the building they rent, it is definitely advisable to have building insurance in place before renting out the buildings. That way, should your building be damaged by irresponsible tenants, you are not put out of pocket by the cost of the repairs required to make the building usable again.
Should you have a partially built structure, builder’s risk insurance could be a good idea. This insurance will cover you against damage caused to the unfinished building be that caused whatever natural event is the cause of the damage. If you do not have this kind of insurance, you will be liable for the cost of the repairs.
The type of building insurance you opt for is entirely dependent on what the intended use for the building is. With so many options available, you will find the one that you need. Other options are insurance for older houses and commercial building insurance. Building insurance for older houses, especially those that have historical value will never be made out for the replacement value, but rather for the actual cash value as the replacement value is incalculable. As for commercial building insurance, the options there are endless. A shopping complex requires different levels of insurance when compared to a warehouse, for example.
The general idea is to ensure that you are able to rebuild you building in case of it being damaged by any cause whatsoever, within reason of course, without costing you, the owner, very much. The more risks your building faces, the more you will pay in insurance premiums and the higher your excess will be. As with most insurance policies, it is often possible to tailor the policy to your needs.
Filed under: General Interest