Buildings Insurance

The short answer is no. While a lot of mortgage providers will try to sell you building insurance whenever you take out a mortgage, you do not have to buy it from them (despite what their sales pitch might imply). The only requirement that the mortgage companies have is that you carry adequate building insurance so that their investment is protected.

In fact, we usually don’t recommend buying building insurance from your mortgage provider. The reason is because your mortgage provider likely doesn’t have as many options as an independent insurance broker. Working with an independent insurance broker like Trusted Union gives you access to more products, expert advice and the best pricing.

Once you’ve secured an insurance policy, the mortgage company might also require that you list them on the policy as loss payees so they can receive compensation if the building were to be destroyed and also so that they’re notified before your policy gets cancelled voluntarily or terminated involuntarily by the insurance company.

The quick answer is no, you’re not able to purchase insurance on anything you don’t have insurable interest in. If you won’t suffer any financial losses from the loss of something, you’re not able to purchase insurance on that thing. Naturally, if you don’t own the property, you won’t be financially damaged if the property were to be damaged.

A common question we get at this point is “what if you rent and happen to damage your landlords building?” With that, you should purchase a form of buildings insurance in a tenant’s legal liability policy to pay for any liability you might have for damaging your landlord’s property.

There are a lot of ways to do it and generally break down to things related to the building, things related to the policy, and things related to the applicant.

The Building - Insurance companies will consider the properties of your building when it comes to setting insurance premiums. Construction is the biggest factor when it comes to pricing because it affects your risk of fire losses but outside of reconstructing your entire building or installing fire sprinklers, installing monitored burglar alarms is one of the easiest ways to save money on your building insurance premiums.

The Policy - One of the easiest ways to save money on your insurance premiums is to sacrifice a bit of coverage. By increasing your deductible or removing some unnecessary coverage, you can save some money on your building insurance.

The Applicant - Applicants with a good claims history will be able to get a discount from most insurance companies. Many insurance companies will also give a discount for loyal customers who have been with that insurer for a long time or have lots of policies with the same insurer.

There are a lot of different ways to save some money on your buildings insurance but not every technique is suitable for everyone. Contact a Trusted Union broker for the most accurate advice.

Yes you do, in a way. Although you won’t need building insurance in the traditional sense like a building owner or landlord would, you would still need insurance to help protect yourself against any liability arising out of damage you negligently cause to the landlord’s building.

For example, if you accidentally leave the stove on when you leave for work in the morning and the house burns down as a result, you could be found responsible for the damage.

While you’re renting, the building is in your care and you have the responsibility to leave it in roughly the same state as when you first rented it. If you’re careless and cause damage to the building, tenant’s liability insurance will step in, defend you and pay for any damages the court orders you to pay the landlord.

Yes, the definition of dwelling building includes not just the building itself but also other fixed structures like the plumbing systems, light fixtures, sinks, counter tops, and other kitchen fittings.

The short answer is: it depends. The biggest factor is the value of the building and the limit of insurance chosen. The more valuable your building is, the more an insurance company might need to pay in the event of a loss and the more expensive your insurance will be.

The other big factor is the risk of fire. If your building is constructed from wood frame, you can expect to pay significantly more than if it were built entirely out of concrete or some other fire resistive material.

Contact a Trusted Union broker to get a more accurate quote based on your own specific situation.

Yes, if you own property, it’s likely a significant investment – as with any large investment, you should make sure you’re managing your risk and protecting it with an insurance policy. This is doubly true if you have a mortgage on the property as most mortgage lenders will require you to have insurance before approving and funding your loan.