What Does Your Home Insurance Really Cover

Perils Covered in a Standard Buildings Home Insurance Policy

When you own a home, you want to make sure you are financially prepared for any unforeseen damages that may occur. Your home is probably one of the biggest investments you’ll ever make and protecting it from unexpected incidents is likely vital to your financial health and peace of mind. 

Building insurance is specifically designed to protect the structure of your property against a variety of potential risks, known as perils. These risks can range from fires and floods to accidental damage and leaking oil tanks, providing comprehensive coverage to ensure your home is protected from potential hazards.

So, what does your policy truly protect you from? Are there any exclusions that could leave you vulnerable? Remember, an insurance policy does not cover every possible scenario—it is a contract with specific, clearly defined limits, so understanding the scope of your coverage before an incident occurs is crucial.

Let’s dive into the most common perils covered in a standard buildings home insurance policy, breaking down what’s typically included and what exclusions you need to watch out for, we will also provide real-life examples to give you a clearer understanding of the coverage your policy might offer.

Table: Common Perils, Coverage, and Exclusions

PerilWhat’s CoveredCommon Exclusions
Fire, Smoke, and ExplosionFire and smoke damage from accidental fires, electrical faults, and gas explosions.Negligence, intentional acts such as arson by the policyholder, or failure to maintain wiring.
Water Damage (Escape of Water)Burst pipes, faulty plumbing, or malfunctioning appliances causing structural water damage.Lack of maintenance, extended unoccupancy, or ignored gradual leaks.
Escape of OilDamage from oil leaks in fixed heating systems, including cleanup and repairs to affected areas.Poor maintenance or failure to service heating systems regularly, gradual unaddressed leaks.
Storm and Flood DamageStructural damage from high winds, heavy rain, or fallen trees during a storm.Poor repair prior to the storm, damage to fences and hedges, and high-risk flood zones.
Subsidence, Heave, and LandslipGround movement affecting home foundations, including subsidence, heave, and landslip.Coastal or river erosion, faulty construction, and poor-quality foundations.
Impact DamageDamage from objects colliding with the home, such as cars or falling trees.Pre-existing disrepair, damage caused by poor maintenance of external fixtures, such as worn-out fences or garden walls.
Vandalism and Malicious DamageDamage caused by intruders, such as graffiti or broken windows.Damage by tenants, family members, or legally allowed occupants, extended unoccupancy.
Accidental Damage (Optional)Unexpected mishaps, such as drilling through a pipe or breaking a window.Deliberate damage, negligence, or damage caused by pets or children (in some policies).

1. Fire, Smoke, and Explosion

Fires, explosions, and smoke damage can severely impact your home, potentially causing structural instability, leading to extensive repairs and significant financial burdens. The aftermath of such incidents may require relocating to alternative accommodation for an extended period, resulting in a significant disruption to your daily routines and a complete upheaval of your normal way of life.

Fire damaged kitchen

What’s Covered:

Fire and smoke damage is one of the most fundamental aspects of home insurance, protecting your home against the potentially devastating impact of accidental fires, electrical faults, and even gas explosions. This coverage typically includes repairs to the structure of your home—walls, ceilings, roof, and permanent fixtures—after a fire. Additionally, any smoke damage, which can spread beyond the fire’s origin, is usually covered, along with the cost to relocate to habitable accommodation.

Real-Life Example:

A short circuit in the kitchen causes a fire, which damages the walls and roof. The fire also leaves behind thick smoke residue throughout the house. Your insurance would typically cover the repairs to the fire-damaged areas as well as the professional cleaning of smoke-stained walls and ceilings.

Common Exclusions:

Insurance doesn’t usually cover fires that result from negligence or intentional acts. For example, arson committed by the policyholder (a crime) or using faulty electrical appliances without maintenance might lead to a rejected claim. Also, failing to maintain key systems like wiring can exclude you from coverage if they contribute to the fire.

2. Water Damage from Leaking Pipes (Escape of Water)

Leaking or burst pipes can cause severe water damage to a property. If left unchecked, such damage can weaken the structural integrity of your home and lead to secondary issues like mould growth, compounding the repair costs. 

What’s Covered:

Water damage is another major concern for homeowners. If a burst pipe, faulty plumbing, or a malfunctioning appliance leads to water damaging your home’s structure—walls, ceilings, or floors—this peril is typically covered. However, understanding the specific conditions for coverage is crucial, as some circumstances may lead to denied claims.

Real-Life Example:

A faulty plumbing connection under your bathroom sink breaks, causing water to flood through the ceiling into your living room. Your home insurance would likely cover the cost of repairing the ceiling and any other resultant damage.

Common Exclusions:

Claims are often denied if the damage was caused by a lack of maintenance, such as a slowly leaking pipe that’s been ignored for months. If your home is left unoccupied for an extended period (typically more than 30 to 60 days) and no preventive measures, such as draining the pipes, were taken, your insurer might reject your claim. Regular maintenance is key to ensuring you’re protected.

3. Escape of Oil from Heating Systems

Escapes of oil from heating systems can be just as, if not more, damaging than water. Oil spills can lead to extensive pollution to a property, structural damage, and high cleanup costs, making prompt attention crucial. This type of damage can result in extensive and costly repairs if not properly and promptly addressed, potentially causing long-term structural issues and environmental contamination.

Oil leaking from a boiler

What’s Covered:

If oil escapes from a fixed heating system, it can cause extensive damage to both the structure and the surrounding areas of your property. Most policies cover the cost of cleaning up the spillage and repairing any damage caused to walls, floors, or foundations.

Real-Life Example:

An oil pipe leading from your central heating system develops a leak, resulting in oil seeping into the foundation and damaging the walls. Your insurance would typically cover the cost of repairing the leak, any structural damage, as well as the clean-up process.

Common Exclusions:

Escape of oil may not be covered if it is due to poor maintenance, such as failing to service your heating system regularly. Additionally, gradual leaks that are left unaddressed for an extended period could also be grounds for a denied claim.

4. Storm and Flood Damage

Storms and floods can be unpredictable and devastating, causing extensive damage to homes. Understanding your coverage for such events ensures that you can confidently face these challenges if they arise.

What’s Covered:

Storms and floods can cause significant structural damage to homes in the UK. If high winds or heavy rain lead to roof damage, subsequent water ingress, or fallen trees which damage your building, your insurance will likely cover the cost of repairs. This type of coverage is essential, especially in areas prone to extreme weather conditions.

Real-Life Example:

A violent storm tears tiles off your roof, allowing rainwater to enter your home and damage the walls and insulation. Your insurance policy may cover the cost of repairing the roof, replacing the tiles, and addressing any water damage inside.

Common Exclusions:

Fences, gates, and hedges are often excluded from storm damage coverage. Insurers may also deny claims if your home wasn’t in good repair before the storm. For instance, if your roof had missing tiles prior to the storm, any resulting damage might not be covered. Additionally, homes located in areas with a high risk of flooding may need additional coverage, as standard policies might exclude flood damage.

5. Subsidence, Heave, and Landslip

Ground movement can be a major threat to the structural integrity of your home, often resulting in substantial and costly repairs. Subsidence, heave, and landslip can lead to cracked walls, uneven floors, and even foundational shifts that may require extensive intervention to stabilise and restore your property.

What’s Covered:

Subsidence, heave, and landslip refer to ground movement that affects the foundations of your home. Subsidence occurs when the ground sinks, causing cracks in walls and foundations, while heave is the upward movement of the ground, and landslip is lateral movement, typically on a slope. Most building insurance policies cover damage to your home caused by these types of ground movement.

Real-Life Example:

Cracks start appearing in your home’s walls due to subsidence, possibly caused by tree roots or soil movement. Your insurance policy should cover the cost of repairing the cracks and stabilising the affected areas.

Common Exclusions:

Coastal or river erosion, which can also lead to ground movement, is usually not covered. Damage caused by poor construction, faulty materials, or inadequate foundations may also be excluded. If the subsidence is a result of poor building practices, insurers may deny the claim.

6. Impact Damage

Impact damage can happen when you least expect it and often results from events entirely beyond your control, such as unforeseen accidents, falling branches, or unintentional vehicle collisions. Such incidents can cause major structural issues, requiring immediate attention and costly repairs to restore your property to a safe condition. 

What’s Covered:

Impact damage refers to incidents where something physically collides with your home, such as a car crashing into your garden wall, a tree falling onto your roof, or debris from nearby construction striking your property. This type of coverage ensures that the structural damage caused by these unexpected events is repaired.

Real-Life Example:

A car loses control and crashes into your front wall, causing severe damage. Your home insurance policy would typically cover the cost of repairing the wall and addressing any resulting structural issues.

Common Exclusions:

If a wall was poorly maintained or already in disrepair before being impacted by a car, the insurer might deny the claim, as the damage could be attributed more to wear and tear rather than the impact itself.

7. Vandalism and Malicious Damage

Vandalism and malicious acts can result in extensive property damage, such as shattered windows, graffiti-covered walls, or even severe structural damage. The consequences of these acts often lead to costly repairs, potential security vulnerabilities, and considerable disruption to your daily routine, leaving homeowners to manage both the physical and emotional fallout. 

What’s Covered:

Vandalism, such as broken windows or graffiti, and malicious damage done to your home by intruders are generally covered by standard home insurance policies. Whether someone has deliberately damaged your home’s walls, doors, or windows, your insurance should help cover the cost of repairs.

Real-Life Example:

While you are away on holiday, vandals break into your home, smashing windows and damaging the front door. Your policy may typically cover the repair or replacement of the broken glass and door.

Common Exclusions:

Damage caused by tenants, family members, or other occupants who are legally entitled to be on your property is usually excluded. If your home is left unoccupied for more than 30-60 days without notifying your insurer, vandalism cover may also be voided.

8. Accidental Damage (Optional)

Accidental damage can occur at any time, often without warning, and may lead to costly repairs if not properly covered by your insurance policy. Such damage can range from minor incidents like a broken window to more serious problems, such as replacing damaged flooring or dealing with extensive water damage. These disruptions can create considerable inconvenience and financial strain if not promptly resolved.

What’s Covered:

Accidental damage provides protection for unexpected mishaps that lead to damage to your home’s structure. This could include incidents like drilling through a pipe or accidentally allowing a sink to overflow. Accidental damage is often available as an add-on to standard policies rather than being automatically included.

Real-Life Example:

You’re hanging a picture and accidentally drill into a water pipe, causing water to flood the room. If you have accidental damage cover, your insurance would help cover the cost of repairing the pipe and any resulting water damage.

Common Exclusions:

Deliberate damage or damage caused by negligence (such as ongoing misuse of a system) will not be covered. Additionally, some policies exclude damage caused by pets or children, so check your policy carefully if you have a busy household!

Conclusion

Understanding the perils covered by your building insurance is essential for ensuring your home is fully protected. Each peril, from fire and water damage to subsidence and vandalism, comes with its own set of inclusions and exclusions. By knowing what is and isn’t covered, you can avoid costly surprises when you need to make a claim.

Regularly reviewing your policy and taking proactive steps, such as conducting regular home maintenance and promptly addressing small issues before they escalate, will help ensure that your coverage remains effective and that you are fully protected when disaster strikes.

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