The importance of buildings insurance for landlords
Buildings insurance is something that mortgage lenders require you to have but, much more than that, it provides you with essential cover for both the fabric of your property and any claims made against you from anyone suffering injury while there.
Although different providers are likely to 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 own landlord buildings insurance covers all of the above, as well as up to £15,000 worth of alternative accommodation costs if your tenants need to be re-homed while repair work is undertaken. If you would like to discuss a policy or get a comparable quote, you can call our insurance team on 01392 849 761.
Given the recent media coverage of fire safety following the Grenfell Tower blaze in London, it’s worth us highlighting what your buildings insurance will cover in case of fire damage.
If the property was affected by fire, your policy should cover you for everything from repairing minor damage to the fabric of the building, through to rebuilding a property that’s been completely destroyed. You may also be covered for the cost of repairing any damage caused by the fire brigade in tackling the fire and even the cost of replacing fire extinguishers. As with any insurance policy, you need to check your provider’s specific terms and conditions to clarify exactly what’s covered and the details of any exclusions.
Importantly, you need to 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 other possessions against fire or any other kind of damage or theft, you need to take out contents insurance and be sure to remind your tenants that their belongings are not covered under your policy – they need to take out their own.