When you buy a home in Scotland you need buildings insurance in place by settlement, and it is usually a condition of your mortgage. It must cover the cost of rebuilding the property, not its market value. Contents cover is separate and optional. If you buy a flat, you also share responsibility for insuring the building with your neighbours, which changes how you should shop. Ask your solicitor from which date cover must start.
What each type of cover does
| Cover | What it protects | Who normally needs it |
|---|---|---|
| Buildings | The structure: walls, roof, floors, fixed fittings, permanent outbuildings | Every owner; usually required by a lender |
| Contents | Your belongings: furniture, electronics, clothing | Optional, but sensible for most households |
| Combined policy | Both, with one renewal date | Many owner-occupiers |
| Landlord or specialist | Let properties, unusual construction | Landlords, listed or non-standard buildings |
Insure for rebuilding, not purchase price
The right figure is the full reinstatement value: what it would cost to rebuild the home to the same standard. mygov.scot uses that standard for tenement owners. It can be well above or below what you paid, because the price includes land and location. Insurers and surveyors can help you estimate the figure, and the survey in the Home Report may help, but it is a valuation, not a rebuild cost; see the Home Report explained. Underinsuring can lead to a reduced payout when you claim.
Flats and tenements
mygov.scot states that every owner must have insurance covering their share of the common areas, for example through building insurance, so that each can contribute if the tenement needs rebuilding. The tenement is only properly insured if every other owner has the correct cover too. You can ask other owners in writing for evidence of full reinstatement cover and that premiums are paid, and they must provide it within 14 days. If an owner is not insured, you can apply to the sheriff court to force them, and mygov.scot advises getting legal advice first.
- Your title deeds may set out how insurance is arranged and how costs are shared. Ask your solicitor to explain this before you conclude missives.
- A factor may arrange a block policy and bill owners for it. Ask for the policy summary, what it covers and what the excess is.
- A block policy covers the shared structure. You still need contents cover, and possibly cover for the interior of your own flat.
- See buying a flat or tenement in Scotland for shared repairs.
Choosing a policy
- Check what the lender requires: buildings cover for at least the rebuild cost, noted on the policy.
- Compare policies like for like: excess, limits, exclusions, and cover for flooding or subsidence in the area.
- Check flood risk using the Scottish Environment Protection Agency's flood maps before you buy.
- Declare everything accurately: alterations, home businesses, previous claims, unoccupied periods. Inaccurate answers can invalidate claims.
- Decide when cover starts and make sure it is live by the date of entry.
Quotes are usually valid for a limited period, so get comparison quotes once your offer is accepted and book the policy to start when your solicitor confirms the date. Do not leave it until the morning of entry.
Cover details worth checking
- Excess: the amount you pay on each claim. A higher excess lowers the premium but costs more when something goes wrong.
- Limits: single-item limits on contents, and cover for items outside the home.
- Accidental damage: often an optional add-on, not included as standard.
- Unoccupied clauses: cover may be restricted if a home is empty for a set number of days, which matters during refurbishment.
- Alternative accommodation: what the policy pays if you cannot live in your home after an insured event.
New-build homes, older properties and homes with non-standard roofs or construction can affect both price and eligibility, so give accurate details when asking for quotes. If you plan major work after moving in, tell your insurer, as it can change your cover. If a claim is turned down, you can complain to the insurer and then to the Financial Ombudsman Service.
Timing and handover
Ask your solicitor when the risk of loss passes to you under the contract. Standard practice is for the seller to keep the home insured until the date of entry, but the missives can change that, so check the agreed terms rather than assuming. Your lender will normally want buildings cover to start on or before the date of entry, and your solicitor may ask for proof before releasing funds. Keep the policy documents with your mortgage papers, and diarise the renewal date so you can compare prices a few weeks beforehand rather than rolling over automatically.
Insurers are regulated by the Financial Conduct Authority; check an adviser or broker is authorised on the FCA Register. This is general information, not insurance or legal advice.
Frequently asked questions
Do I need buildings insurance to get a mortgage?
Lenders normally require it. Confirm the required start date and sum insured with your lender and solicitor.
Is buildings insurance based on the price I pay?
No. It is based on the rebuild cost, called the full reinstatement value.
Can I check my neighbours are insured?
Yes. In a tenement you can ask other owners in writing for proof of cover, and they must reply within 14 days.
Is contents insurance compulsory?
No, but it protects your belongings, which buildings insurance does not.