Your rented property can be a great asset. But as a landlord or buy-to-let investor, if you’re unprepared or just plain unlucky, it can fast become a financial burden. From insurance if a tenant doesn’t pay rent to the building, public liability and more, are you confident you know what you are covered for? Remember, not all cover is the same, so remember to compare insurance on a like-for-like basis.
With our buildings insurance, developed for landlords and buy-to-let investors, you can rest assured your rental property is in safe hands.
Key features of our standard buildings cover for landlords
- the building up to the sum insured
- garages, domestic outbuildings
- car parks, roads, pavements, terraces, patios, drives and footpaths
- walls, fences, gates, canopies, TV aerials, satellite dishes, external lighting,lamp posts, fixed signs, CCTV
- drains, sewers and septic tanks
- fire, smoke, storm, flood, escape of water from tanks, pipes or heating installations, theft or attempted theft, riot, civil commotion, leakage of oil from a fixed heating installation, impact by aircraft, road, vehicle, animal or train, falling radio and television aerials and dishes, fallings trees and subsidence (option to include malicious damage by tenants and accidental damage for an additional premium)
- public liability up to £2 million (option to increase to £5 million for an additional premium)
For a copy of our guide to Residential Landlord insurance, the cover provided under a standard policy and examples of how the cover could benefit you, click here.
What’s the definition of a landlord?
For insurance purposes, a person or company that owns (or leases) real estate, which they then rent to other persons to live in or use. This may be residential or commercial property.
What does landlord insurance cover?
Landlord insurance can provide cover that protects landlords from the risks associated with their rental property. It usually includes buildings and contents insurance, and can also include specific covers such as loss of rent, property owners’ liability, etc. The exception is where the property is a flat or apartment. In this case, unless the residential landlord owns outright or has a share of the freehold, then he or she will not be responsible for arranging the buildings insurance cover. In this situation buildings insurance cover is the responsibility of the freeholder.
Do I need landlord insurance for a flat or apartment?
It depends on what you own. If you own the freehold of the building, or share of the freehold, then your buildings insurance would commonly be covered under what is known as a ‘block’ insurance policy and you would pay a share of the premium as part of your service charge. The landlord cover would then be separate, to cover you for risks such as damage to contents, loss of rent, property owners’ liability, etc.
How much is landlord building insurance?
Like all properties, this can vary widely depending on a range of factors, including (but not limited to) the buildings sum insured, location, construction, tenancy and claims history, among others.
Is it a legal requirement to have residential landlord insurance?
You are under no legal obligation to have landlords insurance although many buy-to-let mortgage lenders will require it.
Do I need landlord and buildings insurance cover?
Many landlord policies will cover buildings insurance as well but if it’s a leasehold flat that is being let then your share of the buildings insurance premium will probably be part of your service charges and you may want to consider taking out additional landlord cover. Don’t forget you will still need to arrange cover on any contents you have furnished the building with.
What insurance do I need for my rental property?
If you are a buy-to-let investor then most mortgage companies will insist on buildings insurance cover. You can also take out additional landlord cover to protect you from a wide range of risks such as loss of rent and property owner’s liability. If you are letting a flat or apartment, the buildings insurance will normally be arranged by the landlord who owns the freehold (the freeholder) and you will pay your share of the premium as part of your service charges. But you would still need to arrange your own contents and liability cover.
Does landlord insurance cover tenant’s damage and contents?
It is the tenant’s responsibility to arrange insurance cover for their own property. The policies vary as to what cover they provide for damage caused by tenants to your building and any contents you have provided. Most cover accidents but many exclude (or will charge extra premium for) malicious damage by tenants as this is often a problem.