Landlord buildings insurance can cover repair or rebuilding costs when an insured event damages the structure of a rented property.
Landlord buildings insurance covers the physical structure of a property that is rented to tenants. It can help pay for repairs or rebuilding when the property is damaged by an event included in the policy.
Cover usually applies to the walls, roof and floors. It may also include permanent fixtures and fittings, such as fitted kitchens and bathrooms. Garages, sheds, pipes and drains may also be covered, depending on the policy.
The Financial Ombudsman Service explains that the line between buildings and contents can sometimes depend on whether an item is a permanent part of the property.
Policies commonly cover damage caused by events such as:
The exact risks covered vary. An excess will usually apply, and some types of claim may have a higher excess. MoneyHelper’s buildings insurance guidance explains common insured events, exclusions and excesses.
Landlord buildings insurance is not the same as full landlord insurance. Buildings cover may not protect furniture, appliances or other removable items owned by the landlord. These may need landlord contents insurance.
A wider policy may offer cover for property owners’ liability, loss of rent, legal expenses or home emergencies. These features may be optional and will have their own limits, conditions and exclusions.
There is no single UK-wide rule requiring every landlord to buy landlord buildings insurance. However, Rent Smart Wales says landlord insurance is a mandatory licence condition in Wales.
A mortgage lender may also require suitable cover. The Association of British Insurers provides guidance on mortgage requirements and responsibility for insuring leasehold properties.
For a leasehold flat, the freeholder or managing agent may arrange buildings insurance for the whole building. The landlord may contribute through a service charge. Check the lease before arranging separate cover to avoid gaps or unnecessary duplication.
Insurance does not replace a landlord’s repair duties. In England, landlords are responsible for certain repairs to the structure, exterior and essential installations. These duties are outlined in the GOV.UK guidance for private landlords.
The buildings sum insured should normally reflect the full rebuild cost of the property, rather than its sale price.
Rebuilding costs can include demolition, site clearance, labour, materials and professional fees.
If the sum insured is too low, the property may be underinsured. This could reduce the amount paid following a claim. The outcome will depend on the policy terms and the circumstances. The Financial Ombudsman Service’s underinsurance guidance explains how these disputes may be assessed.
Common exclusions may include wear and tear, poor maintenance and damage that existed before the policy began. Deliberate or accidental damage caused by tenants may also need specific cover.
Empty-property conditions are important. Cover may be restricted when a property is unoccupied for longer than the period stated in the policy. Insurers may require regular inspections, suitable heating or extra security. Definitions and conditions vary, as set out in the Financial Ombudsman Service’s guidance on unoccupied properties.
Provide complete and accurate details when applying. This may include the tenant type, construction, claims history, flood or subsidence history, rebuild cost and expected empty periods. Incorrect or missing information could affect the policy or a future claim.
We arrange landlord insurance through insurers. We can discuss buildings cover on its own or as part of a wider policy, depending on the property, tenancy and full details.
We may also be able to arrange cover for some properties affected by previous flooding, subsidence, claims or periods of unoccupancy. Acceptance, price and cover depend on the insurer and are subject to the policy terms.
Always check the policy wording, schedule, cover limits, excesses, exclusions and conditions before buying.
