Landlords Building
Insurance

Landlords building insurance is a type of insurance that covers you for structural damage to your building, such as collapsed walls, flood damage and subsidence (we’ll go into these in a little more detail shortly).

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What is Landlords Building Insurance?

As with most insurances, it’s not a legal requirement to have Landlords Building Insurance, but it will protect you in the event of costly damage to your property, which you would otherwise have to pay for out of your own pocket.

Buy-to-let mortgage providers will insist you have it in place when you secure your mortgage, in order to protect their investment. Our advisors are available to guide you through everything you need when securing a mortgage and you can also book a call below.

What does Landlords Building Insurance cover?

You cannot get a mortgage without the buildings insurance, no lender will offer you a mortgage without it. But that’s no reason not to make sure that you’re getting the most comprehensive cover possible. As mentioned above, this insurance really covers you for structural damage and some of these details will be covered by Home Emergency Insurance, so be sure to read both policies closely to make sure you understand what covers what!

Let’s look at what covering structural damage means in more detail.

Collapsed walls

As well as making them safe, your building insurance will then come in to make sure that your walls are fully repaired and in no danger of future collapse.

Flood damage

Flooding can leave a huge amount of damage to your floors and walls. Again, your building insurance will come in here to get your property back to pre-flood conditions.

Window damage

If your windows are damaged by bad weather or your tenants are sadly the victims of criminal damage, get them fixed as soon as possible so your tenants feel safe and will prevent heat leaking out and driving up their bills!

Roof damage

Storms are a nightmare for roofs and can cause damage that can result in leaks or collapse. Getting these fixed with Home Emergency Insurance is step one, but your building insurance will step in to prevent larger issues further down the road.

Leaks

They can come at any time, but you are more likely to see burst pipes in the winter, due to the freezing temperatures. Water fixed as soon as possible so your tenants feel safe and will prevent heat leaking out and driving up their bills!

Subsidence

This isn’t something you can prevent, but is a very worrying issue for landlords. Make sure you’re in contact with your tenants who can alert you to any telltale cracks in the walls that could be the first indication of subsidence and jump on this as soon as possible. The sooner the issue is identified, the better as it will hopefully won’t be quite as much of a fix.

How is Landlords Building Insurance different from Home Insurance or Home Emergency Insurance?

Insurance can vary wildly and it’s important to make sure that you are getting not only the best deal for you, but that you are getting a policy that is the right fit for your property portfolio.

When you don’t live in the property, the risks are slightly different. As the residential owner, you know that you are taking care of your property to the best of your ability, but as a landlord, you can never be sure how well your property is being cared for and your access to check is limited. Therefore you should prepare for the worst and hope for the best.

The last thing you want is to invest in insurance that won’t pay when you need it to!

Landlords Building Insurance vs Home Insurance

As a landlord, your needs are different to that of a home-owner. You have a duty of care towards your tenants which means you have to react much more quickly to issues in the property than you would as a homeowner. You may be happy to live with some water damage until you can afford to get it fixed, but your tenant has the right to have the damage fixed as soon as possible.

Property Owners Liability

The Residential Home Insurance you have on your own home will usually have a public liability clause, to cover you in the event of an accident on your property. This could be anything from flood damage reaching your neighbour’s property or your gasman tripping over a broken step.

However, this public liability element won’t extend to your tenants. Residential Home Insurance is designed to cover issues in your own home that affect guests or neighbours. Your tenant doesn’t fall into either category and therefore, if your tenant was hurt in any way by something in your rental property, Residential Home Insurance would not cover it.

Alternative Accommodation

Home Emergency Insurance will often provide alternative accommodation for tenants in the event of an emergency – if there is a flood, or if the boiler breaks down leaving them without heating. However, once the emergency aspect is resolved and it’s safe to return home, the alternative accommodation cover ends.

If the emergency has left damage that needs to be fixed, your Landlords Building Insurance will not only cover that, but will also house your tenant, if necessary, while the work is carried out.

Make sure that you are aware of what your policy covers and cover every eventuality, so that you are not digging into your own pocket to cover your tenant’s Airbnb stay while floors are ripped up and relaid!

Financial Loss and Expenses

Should your property become uninhabitable due to damage, your Rent Guarantee Insurance may not cover this, as Rent Guarantee Insurance tends to focus on losses incurred by non-paying tenants.

As well as covering the costs of fixing any damage, your Landlords Building Insurance will also cover the loss of rental income, so that you can keep up your mortgage repayments while the issue is resolved.

Your legal expenses would also be covered in the event you might need them. If the damage to your property has been caused by a builder or other tradesperson, who aren’t insured for any damage they might inadvertently cause, then your Landlords Building Insurance will cover you in pursuing legal action against them to recoup your losses.

Landlords Building Insurance vs Home Emergency Insurance

Home Emergency Insurance covers just that – emergencies that need to be dealt with quickly. This could be a boiler breakdown that leaves your tenant without heating or hot water, your Home Emergency Insurance cover will pay for the call out and emergency fix.

Unfortunately, that is all that HEI covers. HEI will make sure that the emergency element is dealt with and won’t deteriorate further:

Boiler fixed so that hot water and heating is working again
Burst pipes are fixed and all leakage stopped
Gas and electricity is working again
Roof damage is patched
Pests are eradicated
Building is made safe and secure if there is any damage to windows or doors

Many HEI policies, including ours, will also include an alternative accommodation element, so your tenants will be safely and comfortably housed until the emergency is dealt with. However, once the emergency is resolved, your HEI cover is exhausted.

Landlords Building Insurance will cover you for further issues caused by the emergency:

Flood damage to flooring/carpet and walls
Window replacement in the event the damage was extensive
Fire damage
Damage caused by pests and vermin

Landlords Building Insurance will also cover deeper structural damage, such as collapsed walls and subsidence. While these issues could result in an emergency, as stated, HEI would only cover you up to the point of ensuring that the issue or damage won’t worsen.

Landlords Building Insurance will tackle the deeper issues to prevent future emergencies or worsening damage.

It’s worth noting that this cover won’t extend to damage to furnishings and tech, you would need to look to your Contents Insurance for that. It’s worth noting that your tenant will need to organise Contents Insurance, so we’d suggest you recommend that to them upon moving in.

Do I need Landlords Building Insurance?

The short answer is yes! It is not a legal requirement, but it is a key part of your landlords arsenal.
As a landlord, it is easy to fall back on only fulfilling your legal requirements:

Gas Safety Certificate

Having an up-to-date Gas Safety certificate approved by a qualified engineer is a legal requirement.

EPC

UK law requires landlords to complete an EPC before advertising a home.

EICR

It is mandatory for all rental properties to have a valid Electrical Installation Condition Report (EICR).

Smoke and Carbon Monoxide Detectors

Landlords are required to have at least one smoke alarm installed on every floor.

Gas Safety Certificate

Having an up-to-date Gas Safety certificate approved by a qualified engineer is a legal requirement.

EPC

UK law requires landlords to complete an EPC before advertising a home.

EICR

It is mandatory for all rental properties to have a valid Electrical Installation Condition Report (EICR).

Smoke and Carbon Monoxide Detectors

Landlords are required to have at least one smoke alarm installed on every floor.

But I already have Buildings Insurance

If you are an accidental landlord, you might think you already have this covered. An accidental landlord is just what it sounds like – someone who became a landlord without planning to or purchasing a buy-to-let with that intention. This could be someone who inherited property and chooses to let it out rather than selling it, or it could be someone who is moving and decides to let out their previous home, rather than sell up.

In these instances, it’s possible that the property is already insured. However, it’s important to ensure that the policy is in your name (in the event of inheritance, which would void any existing insurance) and that it is the right insurance.

As we’ve covered, Landlords Building Insurance is different to Residential Home Insurance. If you are renting out a home that you had previously lived in, you will need to update your insurance to the landlord specific variety, or it simply won’t cover you when you need to make a claim!

What are the reasons you need it?

The short answer here is that you won’t get a mortgage without Landlords Building Insurance, but there is a lot more to it than that! However, the many other reasons mostly come down to preparing for any eventuality and saving you money in the long run:

Pay for the damage caused by emergencies

This could mean replacing flooring or plastering destroyed by flood; replacing a boiler that breaks down regularly; repairing damage done by pests or vermin and ensuring they can’t return.

Pay for structural issues

If you find that your property has developed some deeper issues, which is more likely the older the property is, your Landlords Building Insurance will cover you when it comes to correcting those. Which will save you a pretty penny, as structural damage and subsidence can cost a lot to resolve.

Peace of mind

You may think that you don’t need the cover – your property might be a new-build, you might really trust your tenants not to cause long term damage. But the fact is – you just don’t know what could happen. Rather than have the worry and the what ifs niggling away in the back of your mind, take out the insurance and rest easy knowing that you’re covered, no matter what.

What are the risks of an unoccupied property?

If your property is empty and there are no tenants whose comfort and safety you need to worry about, you’re probably wondering why you’d need to spend money on Unoccupied Property Insurance.

But this is the point when your property is at its most vulnerable. An empty property draws more attention and becomes a higher risk than an occupied property.

As you can see, there is a lot of risk involved with leaving your property sitting empty. You can certainly drop by regularly to make sure that everything is fine, and we heartily recommend you or a trusted family member or friend do that. After all, dropping by your empty property is fairly easy to do, as you don’t have to make arrangements with a tenant.

Discovering an issue is a shock and ultimately, you want to know you’re covered in the event that things aren’t totally ok.

Burglars

Noticing your property is empty, burglars could make it a target. While there is likely nothing much to steal, they would be willing to take the risk, knowing they are unlikely to be discovered mid-theft.

Vandals

An unoccupied property is a goldmine for vandals, who can trash the place and cause untold damage with no risk of interruption.

Squatters

If a building is sitting empty, it could draw the attention of squatters, looking for a new home. As you know, there is such a thing as ‘squatter’s rights’, which can take some time to untangle. There is also the possibility that they may not care for the property and leave a lot of damage in their wake when they finally vacate the property.

Damage

If a pipe bursts in an unoccupied property and there’s no one there to notice… just how much damage can it do? The answer is – a lot! The flood could be extensive if there is no one there to turn the water off, then there is damage caused by water sitting for a long time on your flooring, not to mention potential damage to neighbouring buildings.

What does Unoccupied Property Insurance cover?

You can usually only get Unoccupied Property Insurance if your property is unoccupied for 60 days or more, some only offer 30 days. Less than this is usually covered by a standard policy, as it’s considered a void period between tenancies, rather than a building that is long-term uninhabited.

Storm

Acts of God can hit your unoccupied property just as easily as your occupied one.

Flood

Natural disasters can strike at any time, particularly in the winter, and without someone in the property, the damage could be even more extensive – and expensive to fix!

Fire

Accidents happen anywhere and anytime – and fire is particularly destructive.

Leakage

Pipes can burst and cause a flood or oil could leak from a heating system.

Theft

As we said above, your unoccupied property could be even more of a target for burglars, so you will definitely need to be covered for burglary and criminal damage!

Legal fees & property owners liability

The removal of squatters and trespassers, as well as repairing any damage left behind can be expensive, so ensuring you are covered for that can really give you peace of mind.

You can also be covered for damage caused by your property. This could mean a falling roof tile breaking a car window or a broken step tripping up a delivery person.

What does 'Unoccupied Property Insurance' not cover?

However, like all insurances, there are some caveats! Much as it’s good to know what your insurance covers, it’s also good to know what it doesn’t cover, so you can make sure you’re doing everything right!

If your property isn’t properly secured, for example, if your doors or windows are unlocked or not properly secured, your home insurance will be void if you fall foul of thieves or squatters, as they will have technically walked right in, rather than breaking in. When you or someone you trust visits the property to check on it, make sure that all windows and doors are checked and locked before you leave!

Insurers have to be made aware of any works, especially structural works. Be sure to read all that small print, as some insurers may not cover accidents that happen during major works. If your property is unoccupied because you are renovating or extending, it’s unlikely that your Buildings Insurance will cover damage caused by these works

Much like major works, your Buildings Insurance probably won’t cover any damage caused by the builders. Before starting any work, you should check they have a JCT (Joint Contract Tribunal) in place. This is a contract between you the property owner and the tradesperson. Then, if the tradesperson causes any damage to your property while working on the, the JCT will cover it and the tradesperson is liable for the damages.

Best Landlord Buildings Insurance quotes?

So now that we’ve convinced you to make sure that you have Landlords Building Insurance, you’re probably itching to get a quote. Check out the best ones below.

If you have more questions that we haven’t covered here, or you’d just like to speak to a person, you can book a call with our great advisors, who’ll be able to answer your questions and get you a quote in minutes.

Best Landlord Buildings Insurance quotes?

Check out our other insurance products

Rent Guarantee Insurance

Even the best tenants can run into problems which make it hard to pay rent. Protect your income with our RGI, designed for landlords.

Home Emergency Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable, with our Home Emergency Insurance designed for landlords.

Life & Critical Illness

Provide financial support to you and your loved ones when you die and protect yourself in the event of critical illness.

Rent Guarantee Insurance

Even the best tenants can run into problems which make it hard to pay rent. Protect your income with our RGI, designed for landlords.

Home Emergency Insurance

Cover your tenanted property against unforeseen circumstances that make it uninhabitable, with our Home Emergency Insurance designed for landlords.

Life & Critical Illness

Provide financial support to you and your loved ones when you die and protect yourself in the event of critical illness.

Frequently Asked Questions

While we’ve covered an awful lot of questions regarding Landlords Building insurance and how it fits into your insurance arsenal, we’re sure you still have some questions. So we’ve aimed to answer the most common ones below. If you have a question that we haven’t covered, or you just want to talk through your options some more, be sure to book a call with us.

How much does it cost?

As with all insurances, the prices can vary depending on:

Who you insure with. Policy prices can vary from insurer to insurer.
How comprehensive you want your insurance to be. The more comprehensive your cover, the more you are likely to spend on it – and the more you could save in the future if there is an issue! So see it more as future-proofing than just another expense
How much insurance you need. If you have multiple properties to protect, this will cost more than insuring just one. You are also likely to pay more for a larger property than a smaller one
Pre-existing issues. If your property is older or has a history of issues, you may have to pay a little more to cover it, as it is seen as more of a risk to insure

On average, a no-frills policy will cost you around £150 a year, but bear in mind that the more extras you add will drive the price up. Give us a call and we can shop around for the best quote for you.

How long does Landlords Building Insurance last?

As with most insurance policies, Landlords Building Insurance will cover you for a year. You’re very unlikely to find it for a shorter period.

It will usually renew every year, but new policies and products are created all the time, so we recommend making a note in your calendar to remind you before it’s due to renew and booking in a call to see if there’s a better quote for the year ahead.

Can I cancel my Landlords Building Insurance?

Well, you can, but you shouldn’t!

As stated before, you won’t get a mortgage without Landlords Building Insurance as the lender wants to ensure their investment is protected. If you cancel your insurance or fail to renew it, you are in breach of your contract with your lender.

You can certainly cancel the renewal of your current policy if you have found a better deal elsewhere, but make sure that you don’t have a void period between one ending and the other one starting.

Ultimately, if you cancel your insurance, you are putting your investment at risk, either because you’re breaching your contract with your mortgage lender or because anything could happen to your property and you are no longer financially protected for any eventuality.

What properties are covered by Landlords Building Insurance?

There will be a policy for you, no matter your type of property. Some policies may only cover some types of properties, so this is something you will cover when you get a quote.

However, generally ‘standard’ properties are covered by Landlords Building Insurance, including:

Terraced houses
End terrace houses
Semi-detached houses
Detached houses
Bungalows
Maisonettes
Individual flats in purpose-built blocks or buildings
Individual flats in converted buildings or houses
Entire purpose-built buildings with multiple flats
Entire converted buildings or houses with multiple flats

If you are in the process of converting a building, a barn for example, into a house or multiple flats, you may have to do some shopping around. So booking in with an advisor who can do that shopping around and small print for you is a great idea!