Building Insurance

Discover our best selection of building insurance

Key Takeaways

  • Building insurance is a type of policy designed to protect homeowners by covering the cost of repairs or rebuilding if their property is damaged or destroyed.
  • It typically includes coverage for the structural components of your home, such as the roof, walls, and permanent fixtures in areas like the kitchen or bathroom.
  • Additionally, it may extend to other structures on your property, such as garages or sheds.

1financially’s Picks Of Best Building Insurance

USAA

Monthly Cost: $193.44

Quote Access: Online Estimate

Multi-policy Discount: Available

Pros and cons
Pros
  • Replacement cost coverage is included as a standard feature.
  • Identity theft coverage is also a standard provision.
Cons
  • Available exclusively to USAA members.
  • Offers fewer coverage options compared to other companies in our ratings.
USAA Home Insurance Overview

USAA performed exceptionally well across all our sub-ratings, ranking no lower than third in any category except for the sub-rating on the cheapest homeowners insurance. It achieved the top spot for home and auto bundling, customer loyalty, likelihood to be recommended, likelihood to be renewed, and overall value.

USAA homeowners insurance is exclusively available to its members, which includes current and former military personnel and their immediate families. USAA policies offer military-specific protections, such as coverage for military uniforms and equipment for active-duty members and no deductible for damages or losses due to war.

Unlike many other insurers in our ratings, USAA includes replacement cost coverage as a standard feature, meaning depreciation is not considered when valuing your belongings. Identity theft coverage is also included in a standard policy.

However, USAA offers fewer coverage options compared to some other companies we evaluated.

Availability: USAA operates in all 50 states and Washington, D.C.

Amica

Monthly Cost: $146.20

Quote Access: Online Estimate

Multi-policy Discount: Available

Pros and cons
Pros
  • Standard and Platinum Choice homeowners insurance policies are available
  • Dividend-paying policies are available.
Cons
  • Not offered in Alaska or Hawaii.
  • Dividend policies are not available in all states.
Overview

Amica is the most affordable homeowners insurance provider in our rankings, offering an average monthly premium of $146 for $300,000 in dwelling coverage and $100,000 in liability coverage. Even with increased coverage limits—$500,000 for dwelling and $300,000 for liability—Amica remains the most economical option at $179 per month. It leads our ratings for claims handling and performs well in most of our other categories, though it doesn’t rank as high in home and auto bundling or overall value.

Amica provides two types of homeowners policies: the Standard Choice plan and the Platinum Home Choice plan. The Platinum policy includes all the benefits of the Standard Choice plan, plus additional coverage options such as water backup, replacement cost for personal belongings, and extended protection for computers and business property.

Both policies offer the option to earn dividends, which means you might receive a portion of your annual premiums back. However, dividend-paying policies tend to be more expensive, dividends are not guaranteed, and availability varies by state.

Availability: Amica offers policies in 48 states and Washington, D.C., but does not cover Alaska or Hawaii.

Allstate

Allstate

AM Best Rating: A+

Monthly Cost: $184.15

Multi-policy Discount: Available

Pros and cons
Pros
  • Amica offers options for home-sharing coverage, which can be added to your policy if you rent out your home or part of it on platforms like Airbnb or Vrbo. This coverage helps protect against risks associated with renting out your property, such as damage caused by guests
  • Amica provides a variety of optional add-ons to customize your homeowners insurance policy. These add-ons can include coverage for water backup, replacement cost for personal belongings, and enhanced protection for valuable items such as computers and business property.
Cons
  • Amica does not offer an option to purchase homeowners insurance online. To acquire a policy, you’ll need to contact their representatives directly.
  • Amica’s homeowners insurance is not available in California.
Allstate Home Insurance Overview

Although Allstate didn’t secure the top spot in any of our sub-ratings, it performed strongly across the board, ranking in the top two or three in most categories except for the cheapest homeowners insurance companies, where it is No. 4. Notably, Allstate is ranked second for both best homeowners insurance companies for claims handling and best value.

Allstate offers a range of add-ons for its standard policy. You can select from common extras such as coverage for water backups and valuable items, as well as less common options like coverage for home sharing or upgrades to more energy-efficient items following a covered loss. If you run a home business, higher limits for business property are also available.

While you can obtain quotes through Allstate’s website, purchasing a homeowners insurance policy requires working with an agent.

Availability: Allstate provides policies in 49 states and Washington, D.C. However, as of June 2023, new policies are not being issued in California. Residents seeking an online quote in California will be redirected to Hippo, an online insurance provider owned by Allstate.

StateFarm

Monthly Cost: $170.89

AM Best Rating: A++

Quote Access: Online Estimate

Pros and cons
Pros
  • Allstate offers a broad range of coverage options, including standard add-ons like protection for water backups and valuable items, as well as specialized options such as home-sharing coverage and upgrades to energy-efficient items after a covered loss. You can also get higher coverage limits for business property if you run a home business.
  • Allstate has an extensive network of agents, providing personalized service and support to help you navigate your insurance needs and tailor your policy to your requirements.
Cons
  • Allstate’s homeowners insurance is not available in California, Massachusetts, or Rhode Island.
  • Fewer discounts offered compared to other insurers in our rating
  • To purchase a homeowners insurance policy from Allstate, you need to work with an agent. Online purchases are not available.
Overview

State Farm performed well in our sub-ratings, with scores ranging from average to above average across the board. It achieved its highest ranking as No. 2 for the cheapest homeowners insurance companies, with an average monthly premium of nearly $171. Additionally, it is tied for third place among homeowners insurance companies most likely to be renewed.

State Farm provides a range of options to enhance your policy, including coverage for identity theft, home systems, service lines, and energy-efficient upgrades (replacing damaged items with more energy-efficient ones). It also offers increased coverage limits for business property and valuable personal belongings.

With a large network of agents nationwide, State Farm ensures personalized service, though you must purchase your policy through an agent. After purchasing, you can manage your policy, pay premiums, and file and track claims using its mobile app.

Availability: State Farm offers new policies in 47 states and Washington, D.C., but does not issue new homeowners policies in California, Massachusetts, or Rhode Island.

Nationwide

Monthly Cost: $236.16

AM Best Rating: A+

Quote Access: Online Estimate

Pros and cons
Pros
  • State Farm’s homeowners insurance policies include standard coverage for building ordinances, which helps with the costs of upgrading your home to current building codes after a covered loss. They also provide credit card coverage to protect against unauthorized transactions.
  • State Farm offers discounts for installing “smart home” devices that enhance security and efficiency, as well as for certain home renovations that improve safety or energy efficiency.
Cons
  • State Farm’s homeowners insurance is not as widely available as some other insurers in our rating. It offers policies in 47 states and Washington, D.C., but does not provide coverage in California, Massachusetts, or Rhode Island.
  • Expansive
Overview

Nationwide generally performed well in our sub-ratings, with a few exceptions. It scored below average in both the categories of homeowners insurance companies most likely to be renewed and homeowners insurance companies for customer loyalty, earning 4.1 out of 5 in each category, compared to an average score of 4.2. Nationwide ranked sixth in our rating for the cheapest homeowners insurance companies, with an average monthly premium of $236, but it excelled in our homeowners insurance for value sub-rating, tying for third place.

Nationwide’s standard homeowners policy includes coverage for credit card fraud and building ordinances, helping to pay for repairs or rebuilding to meet current building codes after a covered loss. Optional coverages are available for water backup and identity theft, as well as for replacement costs of your belongings and dwelling.

Nationwide offers several discounts, including those for smart home devices and protective systems such as security alarms and smoke detectors. There is also a discount for renovating plumbing, electrical, or heating and cooling systems, as well as a discount for switching from another insurance provider based on the number of years with the previous insurer.

Availability: Nationwide provides homeowners insurance policies in 44 states and Washington, D.C.

Do I Need Building Insurance ?


If you own property—whether it’s a house, flat, or another type of building—you should consider building insurance to protect against repair costs for damage caused by fire, flood, or subsidence, as well as the cost of rebuilding if necessary.

When Building Insurance is Necessary

  1. If You Have a Mortgage
    Most mortgage lenders require building insurance for the duration of your loan to protect their investment.
  2. If You’re a Landlord
    As a property owner renting to tenants, you’re responsible for repairing damage to the building. Building insurance can save you from hefty out-of-pocket expenses.
  3. If You Own Your Home Outright
    Although it’s not legally required if you don’t have a mortgage, building insurance is still a wise choice to safeguard your investment against unforeseen damages.

What Does Building Insurance Cover?


Building insurance typically covers the cost of repairs or rebuilding your home if it is damaged or destroyed due to:

  • Fire: Protection against damage caused by accidental or deliberate fires.
  • Severe Weather: Includes storms, flooding, and other extreme weather events.
  • Subsidence: Covers damage caused by the ground beneath your home sinking or shifting.
  • Vandalism: Protection against deliberate damage to your property.
  • Vehicle Collisions: Covers repairs if a car or other vehicle damages your property.
  • Water Damage: Includes damage caused by burst pipes or leaks.
  • Temporary Accommodation: Provides coverage for alternative living arrangements while repairs are being made.

How Much Does Building Insurance Cost?


The cost of building insurance depends on various factors, including:

  • Your Claims History
    Frequent claims on your home insurance can result in higher premiums.
  • Your Address
    Location significantly affects costs. Homes in flood-prone or high-risk areas tend to have higher premiums.
  • Building Materials
    Properties constructed with high-risk materials, such as wood, may be more expensive to insure due to increased fire risk.
  • Security Features
    Installing burglar alarms, surveillance cameras, or other security systems can reduce your premiums.
  • Your Level of Coverage
    Homes with expensive materials or non-standard construction often incur higher rebuild costs, leading to higher insurance premiums.

How Can I Find the Best Building Insurance?


While many companies offer affordable building insurance, your choice shouldn’t rely solely on price.

To find the best deal, compare policies using tools like the 1Financially online home insurance comparison platform.

This allows you to review a range of options, assess coverage, and choose the right policy tailored to your needs.

It helps identify the coverage you require and the amount necessary to insure your home properly.

What’s the Difference Between Building Insurance and Contents Insurance?


Building and contents insurance are two components of home insurance:

  • Building Insurance: Covers the physical structure of your home, such as walls, roof, and permanent fixtures.
  • Contents Insurance: Protects your personal belongings inside the home, including furniture, appliances, and valuables like jewelry.

Why Should I Get Building Insurance?


Building insurance safeguards you from unexpected repair or rebuilding costs caused by events like fire, flooding, or storms.

These damages can result in expenses running into tens or even hundreds of thousands of pounds.

Paying a few hundred pounds annually or monthly for building insurance, ensure you financial protection against costly repairs or rebuilds, providing peace of mind for unforeseen incidents.

What Types of Damage Are Covered by Building Insurance?


The coverage provided by your building insurance depends on factors like your location and property type. For example:

  • If you live in a wooded area, your policy might include coverage for damage from falling trees.
  • In flood-prone areas, flood damage coverage is essential, though insurers might require additional measures like flood gates or barriers.

Be aware that some forms of damage may be excluded, or you may face higher excess amounts. Always review your policy details carefully before agreeing to the contract.

Am I Covered for Temporary Accommodation?


If your home becomes uninhabitable due to severe damage, your policy may cover the cost of temporary accommodation during repairs.

However, there are typically limits to this coverage, so check your policy to understand the extent of protection.

Does Building Insurance Include a No Claims Discount (NCD)?


A no claims discount (NCD), commonly found in motor insurance, rewards policyholders for not making claims over a set period, usually 12 months.

While some building insurance policies offer an NCD, others do not. Even if an NCD is available, your overall premium will still depend on other factors beyond your claims history.