Landlord Building Insurance Explained

This type of insurance shares similarities with standard home insurance in the sense that there are two different types of cover – landlord buildings insurance and landlord contents insurance. There are a number of reasons as to why buildings insurance is important and why plays a vital role when you rent out your property.

What is Landlord Buildings Insurance?

This type of insurance is needed for any professional landlord. With this form of insurance it is designed to protect the physical materials of the building as opposed to the contents within it. If a landlord had experienced any damage to the structure of their property then buildings insurance would cover this. This is also true for any permanent fixtures and fittings such as bathrooms, kitchens of built in wardrobes.

There are many ways that buildings can be damaged, this ranges from a selection of natural disasters such as flooding, earthquakes or landslides. Humans will often deliberately damage buildings by vandalizing things, with buildings insurance all of these potential disasters would be covered.

building insurance

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Do I really need it?

If you are renting out a property, regular home insurance will not be adequate. Buildings insurance is often referred to as buy to let insurance and is a great way of protecting the landlord’s property. Most insurance companies will offer different levels of cover and added extras to the policy. For this reason it is worth looking around to find the best policy for you. If you do not have the right insurance policy, your property and business could be left vulnerable.

If anything were to go wrong and you didn’t not have the correct insurance policy in place you may find yourself facing large expenses which could put you out of business.  The vast majority of landlord buildings insurance policies will include liability cover insurance too. Liability insurance is essential for providing you with protection should you find yourself having to compensate someone. This would usually be caused by someone being injured in a property you own and a claim then being made against you.

What are the Benefits?

There are some landlord buildings insurance policies that will cover you against accidental damage as a standard feature of the policy; others may offer this as an extra. The reason that landlords buy this type of insurance is to protect them against damage that is caused by their tenants. There are many ways that tenants can damage the buildings that they rent, often they will not mean too but the damage is caused nevertheless. If a tenant undertakes some DIY that is unsuccessful in the landlord’s property they can end up causing thousands of pounds worth of damage.

Some insurance policies will offer the landlord protection against the loss of rent form tenants. This is something that is happening more and more to landlords as tenants struggle to afford to live as rents continue to go up and so does the cost of living.

How will I know how much Cover I will Need?

The way to answer this question is to understand the full rebuild value of your property should it burn to the ground. It is important to remember that the rebuild value is not the same as the market value, the rebuild cost will almost always be considerably lower that the market value.

 

Looking for bulding insurance can be a tricky business, there are many different types and it is important that you seek professional adice when looking for a policy.

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