Do I need buildings insurance?

namsoni

Hi all,
I've been in my flat about a year, and realise I should probably get some kind of insurance, but not sure what kind. My service charge covers buildings insurance, but assume this won't cover repairs in my flat. I know nobody can tell me what that policy covers but based on experience, wondering what kind of insurance others with a similar arrangement have got? Ideally I want something that at least covers my appliances, my water system, and electrics. Apologies if these are really elementary questions but I've struggled to find a clear answer from googling so turning to the learned members on this forum. 

Thank you in advance

N

Sandtree

Buildings insurance will be bought by the freeholder and will cover the building, fixtures and fittings against insured perils like flood, fire, vandalism etc.

You need to buy Contents insurance which will cover all the stuff in the property. The bit that becomes a little grey is if you put in expensive new flooring or replace all the integrated appliances with Miele. In theory these are covered by the Buildings policy however it may not be on a like for like basis. Most home contents insurance includes, or can add, tenants improvements which is designed to cover these types of fixture and fitting enhancements. Its one area that tends to be fairly poorly implemented online and so if you need a higher limit than they offer as standard then contact the insurer before buying and see if they can increase the limit. 

Water systems and electrics again are covered by freeholders building cover but remember this is for insured perils not for maintenance. You need to read your lease agreement on who is responsible for maintenance of these items. There arent any real maintenance type policies you can buy for home, you can look at Home Emergency (standalone or part of your home insurance) which will get you out of a hole but they are only dealing with the emergency not doing a perm fix and making good (though depending on the problem this may be what the emergency repair is - eg for a blocked drain)

tacpot12

The best form of insurance for home repairs is what is called "self-insurance". This is where you save an amount each month in a savings account, so that you have the money to replace or repair boilers, furniture and appliances when this is needed. This usually works out much cheaper and more flexible than paying for insurance from an insurance company.   

namsoni

tacpot12 said:

The best form of insurance for home repairs is what is called "self-insurance". This is where you save an amount each month in a savings account, so that you have the money to replace or repair boilers, furniture and appliances when this is needed. This usually works out much cheaper and more flexible than paying for insurance from an insurance company.   

It's the approach I've generally taken, but like many people right now, due to the pandemic my income has changed, and I'm having to use my savings to live off. I've recently been hit by an unexpected and substantial repair cost, that normally I'd be able to recover the cost of from my income, but unfortunately not at the moment. I can't afford to not give myself some protection from a similar repair until I'm able to recover my pre-pandemic financial position. It's probably worth modifying your advice to account for the fact that savings that may have originally been intended for boilers, furniture and appliances are having to be repurposed for other life needs right now. To use your language, currently, I'm having to claim off my "self-insurance" to pay my mortgage, groceries and bills, and my insurance provider isn't in a position to cover claims for other expenses. 

namsoni

Sandtree said:

Buildings insurance will be bought by the freeholder and will cover the building, fixtures and fittings against insured perils like flood, fire, vandalism etc.

You need to buy Contents insurance which will cover all the stuff in the property. The bit that becomes a little grey is if you put in expensive new flooring or replace all the integrated appliances with Miele. In theory these are covered by the Buildings policy however it may not be on a like for like basis. Most home contents insurance includes, or can add, tenants improvements which is designed to cover these types of fixture and fitting enhancements. Its one area that tends to be fairly poorly implemented online and so if you need a higher limit than they offer as standard then contact the insurer before buying and see if they can increase the limit. 

Water systems and electrics again are covered by freeholders building cover but remember this is for insured perils not for maintenance. You need to read your lease agreement on who is responsible for maintenance of these items. There arent any real maintenance type policies you can buy for home, you can look at Home Emergency (standalone or part of your home insurance) which will get you out of a hole but they are only dealing with the emergency not doing a perm fix and making good (though depending on the problem this may be what the emergency repair is - eg for a blocked drain)

Very useful, thank you!