Buildings Insurance for Landlords and Leaseholders Explained

As a landlord or leaseholder, you need buildings insurance to protect your property from damage or loss. This type of insurance covers the physical structure of the building, including the walls, roof, and foundation.

Buildings insurance is a must-have for landlords and leaseholders, as it can help you recover the cost of repairs or rebuild the property if it's damaged or destroyed. In the UK, buildings insurance is often a requirement for mortgage lenders, so it's essential to have it in place.

You can choose to take out buildings insurance as a standalone policy or as part of a combined buildings and contents insurance policy. The cost of buildings insurance varies depending on factors such as the property's value, location, and age.

So you're considering Hiscox for your buildings insurance? With Hiscox, you get unlimited cover for buildings as part of their Buildings and Contents Insurance policy.

Their exceptional claims service is a major draw, as one satisfied customer, L. Cook, can attest: "At a very stressful time your staff were really lovely. Very helpful and knowledgeable."

Hiscox also provides alternative accommodation if your home can't be lived in due to damage, paying up to £150,000 over 3 years.

Accidental damage is a common issue, and Hiscox has got you covered, paying out for accidental damage whether you're at home or away.

Here are some of the key benefits of choosing Hiscox for your buildings insurance:

We offer a free LeakBot and one engineer visit per year to all our buildings insurance customers. This smart water leak detection device alerts you to hidden water leaks early, so you can deal with them before they become a serious problem.

Damage caused by water leaks is one of the worst things to happen to your home, and LeakBot helps prevent that.

LeakBot is a valuable addition to our buildings insurance, which covers sudden and unexpected events that damage the property itself, such as fire, subsidence, water damage, or explosion.

Our buildings insurance provides cover for all your home, including the roof and walls, any items that are fixed to its structure, and any outbuildings.

However, things like damage caused by wear and tear, rust, rot, fungus, or mould, normal settlement, and other gradual things are not covered by your policy.

LeakBot is a smart water leak detection device that alerts you to hidden water leaks early.

This means you can deal with them before they become a serious problem, like the damage caused by water leaks that can happen to your home.

LeakBot is now being offered to all buildings insurance customers for free, along with one engineer visit per year.

This is a great service, especially if you're not aware of any leaks in your home, as it can save you a lot of stress and money in the long run.

With LeakBot, you'll receive alerts for hidden water leaks, so you can take action right away and prevent further damage.

LeakBot and Cover is designed to protect you from unexpected events that can damage your home. Our cover includes sudden and unexpected events such as fire, subsidence, water damage, or explosion.

We also cover damage to your home's structure, including the roof and walls, as well as any items that are fixed to its structure. This means that your outbuildings are also protected.

Some things that might not be covered by your policy include damage caused by wear and tear, rust, rot, fungus, or mould, or normal settlement. These are things that happen gradually over time.

Here are some examples of what might be covered under LeakBot and Cover:

Buildings insurance typically covers the structure of your home, including walls, windows, doors, and roof, but not the contents inside.

The policy period is usually 12 months, but some policies may offer longer or shorter terms.

You can usually choose from a range of policy limits, such as rebuilding costs or a fixed amount, to suit your needs.

Some policies may have an excess, which is the amount you need to pay towards a claim.

The cost of rebuilding your home is a crucial factor in determining how much coverage you need for your buildings insurance. This is not the same as the price you paid for your home or its current market value.

You can use online calculators like the Building Cost Information Service to help you work out the cost of rebuilding your home. This will give you a more accurate estimate than relying on general assessments.

The sum insured is the amount you need to cover the cost of rebuilding your home. It's essential to ensure you have enough cover, but not so much that you're over-insuring yourself.

Some insurers offer unlimited cover, which can be a good option if you're not sure what the rebuild costs are. However, if you already know the costs, it may be cheaper to shop around for a policy that fits your exact needs.

Here's a rough idea of how much you might expect to pay for buildings insurance:

Keep in mind that rebuild costs can rise over time, so it's essential to review your coverage regularly. Some insurers offer policies that will increase the sum insured automatically in line with rebuild costs.

Landlord insurance is a must-have for property owners who rent out their buildings. You could pay as little as £157 for landlord building insurance or £13.99 per month if you choose to pay by direct debit.

The cost of your policy will depend on factors like the type of construction and size of the property. From January to August, 10% of customers paid £157 or less.

Landlord building insurance policies typically include a range of covers, including buildings cover, loss of rent, property owners' liability, employers' liability, unoccupied property cover, and malicious damage by tenants. These covers help protect your property and your finances in case of unexpected events or damage.

Most insurance policies require you to have an Assured Short Term Tenancy Agreement (AST) in place, regardless of who you're letting to.

As a leaseholder, it's essential to understand your responsibilities when it comes to buildings insurance. Your lease may require you to have buildings insurance with a named insurer.

If your lease specifies a particular insurer, you'll need to ensure you comply with this requirement.

You may be able to choose your own insurer, but you should always check your lease to confirm.

If you're renting, it's essential to understand your insurance responsibilities. Your landlord usually takes out the insurance, but you may still be responsible for loss or damage to fixtures and fittings.

If you're not careful, you could end up footing the bill for any damage you cause. Your household contents insurance may cover this, so be sure to check your policy.

In many cases, the landlord's insurance will cover the building and any external structures, but not the contents inside. This is why it's crucial to have your own insurance to protect your belongings.

As a landlord, you're likely to have a range of costs to consider when it comes to your rental property. One of the most important costs is insurance, but how much can you expect to pay?

You could pay as little as £157 for landlord building insurance, or £13.99 per month if you choose to pay by direct debit. The precise cost of your policy will depend on a number of factors.

The type of construction and size of the property are key factors in determining the cost of your policy. For example, 10% of our customers paid £157 or less between January and August.

Landlord building insurance policies typically contain a range of covers, including buildings cover, loss of rent, property owners' liability, employers' liability, unoccupied property cover, and malicious damage by tenants.

Most insurance policies will have terms and conditions requiring you to have an Assured Short Term Tenancy Agreement (AST) in place, regardless of whether you are letting to your friends, family, or strangers.

Your claims history, address, building materials, security features, and level of cover can all impact the cost of your building insurance. For example, if you live in an area prone to flooding, you'll pay more.

If you have five properties or more, you'll need specialist landlord insurance for multiple properties. This type of insurance is designed to cover the unique risks associated with managing a large portfolio of rental properties.

You'll need to consider factors such as liability, rent income, and property damage, which can be more complex to manage with multiple properties.