What is buildings insurance for landlords?

Landlord buildings insurance protects you when your buildings, including the roof, walls, and fixtures and fittings such as bathroom suites and fitted kitchen units, are damaged due to an insured event like flood or fire.  

Buildings insurance is typically the minimum coverage requirement for a landlords insurance policy.  

Extensive coverage can include:  

• Buildings accidental damage – unintentional or unexpected damage to the main structure of your property  
• Subsidence – damage to your property resulting from subsidence, which is the gradual sinking of the ground supporting a building  
• Trace and access – locating and repairing water or oil leaks at the source

These covers may have higher access or lower limits.

Sum insured is the maximum amount your landlords insurance policy will pay out if your property is destroyed or damaged beyond repair.

For example, Hiscox landlords insurance can cover buildings with a maximum sum insured of £1 million.

Buildings insurance customers might also include the following covers:

• Property owners’ liability, which can protect you if someone injures themselves or their belongings are damaged on your rental property. Property owners’ liability could cover potential legal fees and compensation costs. 
• Alternative accommodation or loss of rental income, which covers the rent you lose or the cost of rehousing tenants during repairs if your property becomes uninhabitable due to an insured event.
• Unoccupied property cover, which offers full coverage protection while your property is empty.

Landlords insurance is not legally compulsory. However, it can help landlords manage the risks associated with renting out a property.  

Additionally, employers’ liability insurance is an optional add-on to standard buy-to-let policies, but it may be legally required (external link) if you employ staff, with a minimum coverage requirement of £5 million.  

Some buy-to-let mortgage providers may also require you to have landlords buildings insurance as a condition for loan approval. 

Many landlords start by assessing how much landlords insurance they need and what they can afford to pay.  

This can vary depending on your situation. For example, if you own several high-value rental properties, your requirements might be higher and you might choose multi-property landlords insurance.  

The minimum requirement for a landlords insurance policy is typically buildings cover, which protects the physical structure and permanent fixtures of your property.  

Estimating the cost of completely rebuilding your property if it’s destroyed gives you your buildings sum insured (BSI), which affects your premium.

You can then choose from optional extras. For example:  

• If your property is furnished, you might want to add contents insurance to cover the cost of repairing or replacing items such as furniture and appliances you provide for your tenants.
• If you employ people on your property, you might be legally required (external link) to have employers’ liability cover. 

Once you know how much coverage you need, you can compare policies between insurers. This might involve:

• Getting quotes from various providers
• Reading customer reviews  
• Researching their claims process and customer service reputation
• Noting their coverage limits and exclusions. 

Disclaimer:

Our FAQ pages provide general information and background around the topic covered. FAQ pages are reviewed and monitored periodically by our insurance experts. But the content is not intended to be read as advice and any material is for general information purposes only. If you would like advice for any content, please seek professional assistance.