Buildings insurance is something your mortgage lender will require you to have in place when you exchange on the purchase of a property, to cover the money they’re loaning you against it. But having the right insurance is also hugely important for you, because it means that if something happens to the fabric or fittings of the property, you are less likely to be out of pocket.
As most landlord buildings insurance policies include public liability cover, you’re also protected financially against any claims made against you by someone being injured while in the property.
What should be covered?
Although different providers might offer slightly different cover, you should expect a standard landlord policy to include cover for the following:
- The structure itself and its fixtures to be repaired, replaced or rebuilt
- Burst pipes caused by freezing conditions
- Flooding & fire damage
- Accidental damage to drains, pipes, cables and tanks that convey services to/from the property
- Loss of rent following an insured event, such as a fire or flood
- Malicious damage by your tenants and their guests
- Claims made by any resident, visitor or tradesperson who has been injured as a result of a hazard within the property (public liability).
Our landlord buildings insurance covers all of that, plus up to £15,000 worth of alternative accommodation costs if your tenants need to be re-homed while repair work is carried out. If you’d like to discuss your policy or get a quote from us, just call our insurance team on 01392 849 766.
You’ll be aware that there’s been a lot of media coverage of fire safety recently, following the Grenfell Tower blaze in London. So it’s worth us highlighting what your buildings insurance will cover in case of fire damage.
If there was a fire at your property, your policy should cover you for everything from repairing minor damage to rebuilding it if it is completely destroyed. You might also be covered for the cost of repairing any damage caused by the fire brigade while tackling the fire and even the cost of replacing fire extinguishers.
As with any insurance policy, you’ll have legal fire safety obligations to minimise hazards in the property, so check your provider’s specific terms and conditions to make sure you’re clear on exactly what you need to do, what’s covered and the details of any exclusions.
Importantly, do be aware that the buildings insurance only covers the fabric of the property and any fixtures. If you want to cover your furnishings and any possessions against fire or any other kind of damage or theft, you need to take out contents insurance. It’s also good practice to remind your tenants that their belongings aren’t covered under your policy and they’ll need to take out their own.