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Buildings insurance for care homes covers the cost of rebuilding the property following major damage from an insured event. This includes the structure, walls, roofs, floors, and permanent fixtures that form part of the building. It is designed to return the care home to its previous condition so it can continue operating as intended.
In care homes this cover often extends beyond a standard commercial property. Specialist adaptations such as accessible bathrooms nurse call systems specialist flooring hoists and built in equipment are commonly included where these elements are permanently installed. External features such as boundary walls, outbuildings and paths may also form part of the insured structure depending on the policy.
As care homes are highly adapted environments it is important that all permanent features are reflected within the buildings sum insured.
The sum insured must represent the full rebuild cost of the care home rather than its market value or purchase price. Rebuild costs include demolition, professional fees, labour, materials, and compliance with current building regulations.
Care homes often cost significantly more to rebuild than standard properties. This is due to specialist layouts, enhanced fire safety measures, accessibility requirements and regulatory standards that must be met during reconstruction. Market value does not take these factors into account and can lead to serious underinsurance.
For leased care homes responsibility for buildings insurance depends entirely on the lease. Some landlords insure the structure while others require the operator to arrange cover.
It is essential that care homeowners clearly understand where responsibility sits. If both parties assume the other is arranging insurance gaps in cover can arise leaving the building uninsured.
Buildings sums insured should be reviewed regularly. Extensions refurbishments changes to layout or improvements to facilities can all effect rebuild costs and insurance requirements. Inflation and changes in construction costs can also impact accuracy over time.
Buildings insurance for care homes can be complex particularly when ownership or lease responsibilities are unclear.
If you would like help confirming that your buildings cover is correctly arranged, we would be happy to help you. Please leave your details, and our team will get back to you within 2 working days.
