Owning a rental property comes with responsibility — and protecting your investment is at the top of the list. One of the most important safeguards is landlord building insurance. But what does it cover, and why do landlords need it? Let’s break it down.
What is Landlord Building Insurance?
Landlord building insurance protects the structure of your rental property against damage. This includes walls, roofs, floors, fixtures, and fittings. Unlike standard home insurance, landlord policies are designed specifically for properties that are let to tenants, covering additional risks that come with renting.
What Does it Cover?
While policies can vary, landlord building insurance typically covers:
- Fire, flood, or storm damage to the property.
- Subsidence and structural movement.
- Vandalism or malicious damage caused by tenants or others.
- Escape of water or oil (e.g. burst pipes).
- Accidental damage to fixtures and fittings (depending on the policy).
Some policies also include loss of rent if the property becomes uninhabitable due to insured damage.
Why is it Important?
- Mortgage requirement – Many lenders insist on landlord building insurance as a condition of the mortgage.
- Financial protection – Repairing structural damage can be extremely costly without cover.
- Peace of mind – Knowing you’re protected allows you to focus on maximising rental income.
What’s Not Covered?
It’s important to note that landlord building insurance usually doesn’t cover contents unless you add a contents policy (useful if your property is furnished). It also won’t cover general wear and tear, or maintenance issues that develop over time.
Tips for Choosing a Policy
- Compare multiple providers to ensure the right level of cover.
- Check if loss of rent is included.
- Make sure the policy reflects your property type (e.g. HMO, furnished, leasehold).
- Consider adding landlord liability insurance for extra protection.
Conclusion
Landlord building insurance isn’t just a box to tick — it’s a vital layer of protection for your investment. With the right policy in place, you can safeguard against unexpected costs, meet mortgage conditions, and enjoy peace of mind knowing your property is protected.
Need advice on protecting your rental property? Contact Oak Property Associates today for expert guidance tailored to landlords.