How does building insurance work and what factors should be considered when selecting a policy?

Building insurance works by providing financial protection in case of damage or loss to a building due to events like fire, theft, or natural disasters. When selecting a policy, factors to consider include the coverage limits, deductible amount, premium cost, exclusions, and the reputation of the insurance company. It's important to choose a policy that adequately covers the value of the building and its contents, while also being affordable and offering good customer service.