Landlords Buildings Insurance

What is it?

As a landlord you will normally have a Buy to Let mortgage and just like a residential mortgage your lender will insist that you have suitable buildings insurance in place. Even if you're fortunate enough not to have a mortgage, unless you can afford to rebuild your investment from scratch you should have suitable buildings insurance in place.

Keeping costs down

You may also find that you get a better deal if you buy buildings and contents insurance together. Most policies have a standard excess charge which means you agree to pay the first part of any claim, for example the first £100 or £150. If you agree to pay a higher excess you might get a cheaper policy. Always compare what's covered by a policy, not just the price - the key policy information or a good adviser will help you do this. Some might be cheaper than others, but they may not offer the same level of protection.

What isn't covered?

Your cover is based on what your investment property would cost to rebuild. You can check whether you have enough buildings insurance through the Building Cost Information Service (BCIS) website. It has an online tool to help you calculate the sum you should insure your building(s) for, in case your home has to be entirely rebuilt. Often you can find the rebuild costs of your property on the valuation or survey report. You need to tell your insurer if you extend your property, for example with a loft conversion or conservatory. Your belongings are not covered - these need to be covered separately with contents insurance. If you let your property on a furnished basis you should check with your adviser what is covered as landlords' contents insurance is normally much more restricted than standard home contents insurance policies.

• Accidental Damage Cover - Includes cover for accidental breakage of fixed glass, fixed sanitary fittings, ceramic glass in cooker hobs of built-in units, fixed solar panels, cables, underground pipes or tanks serving your property.
• Building Cover - Cover for the home and fixtures and fittings, garden walls, hedges, paths, drives and patios, car ports, permanent swimming pools built of brick, stone or concrete and any outbuildings.

• No Claims Discount - Maximum discount offered: 1 year - 5 years. NCD can also be protected on some policies.
• Legal Liability
• Metered Water
• Loss of rent or costs for alternative accommodation - up to 20% of the sum insured.