The benefits of buildings insurance for landlords

The benefits of buildings insurance for landlords

0:02 AM, 10th July 2024, About 2 weeks ago

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When shopping around for landlord insurance, it’s important to take a look at buildings insurance.

Buildings insurance shields your property from various risks that could affect your rental property.

Here at Property118, we’ve teamed up with The Home Insurer for building insurance that could save you money.

What does building insurance cover?

Building insurance covers the basic structure of your property, including pipes, windows, cables, and doors.

It protects against common risks such as fire, storms, floods, and loss of metered water or oil.

This coverage also includes garages and outbuildings.

As well as covering property damage building insurance cover can also include:

  • Temporary accommodation costs or loss of rent: If your property becomes uninhabitable, buildings insurance typically covers the expenses for alternative accommodation until it’s repaired. Please note, with rental properties you can have either temporary accommodation or “Loss of rent” but not both combined. Instead of paying for temporary accommodation costs, the insurer may opt to pay the landlord the monthly rental and it is then up to the landlord to deal with the tenant’s accommodation directly.
  • Homeowner’s liability: Buildings insurance generally includes coverage for costs arising from your legal responsibilities as a homeowner. For instance, if a guest is injured due to something in your home, buildings insurance will cover their necessary expenses following the accident.

If your property is part of a block of flats, check whether the freeholder’s insurance includes full coverage. Some cheaper blocks of flats policies will not include temporary accommodation or loss of rent.

What isn’t covered?

It’s important to know that depending on your policy some things may not be covered.

For example, when your property is covered for storm damage by building insurance, some insurers may not include fences or gates because they’re not seen as being part of your property’s main structure.

Other exclusions usually include damage caused by general wear or tear and the cost of getting rid of pests in the property. These are seen as maintenance issues.

Tenant’s belongings are not covered by buildings insurance, but the landlord’s personal belongings can be covered by landlord contents cover. Typically £5000 of landlord contents insurance will cost around £100 per year and will have property owners liability included.

Jake Edmonds, insurance expert, at moneysupermarket, says it’s very important for landlords to have the right cover in place.

He said: “As a landlord, it’s crucial you have the right cover in place to protect the properties you own.

“Yet, according to a recent survey, two in five (41.4%) landlords don’t have specialist landlord cover in place. This means that over one million landlords could be exposed to costly expenses, such as damage to property or legal disputes with tenants.

“Buildings insurance is essential, but contents insurance is optional. However, we recommend taking out both as a landlord. Contents insurance is particularly important if you let out furnished properties. If anything in the property is lost, stolen or damaged, a good policy will pay out for this.”

How much does building insurance cost

Various factors depend on how much building insurance will cost include the construction and size of your property.

Where you live can also impact the cost of your insurance. If your property is near the sea, in a flood-prone area, or exposed to very high winds, your insurance may cost more.

Frequent and costly repairs in your area can also lead to higher insurance premiums.

Why choose The Home Insurer?

The Home Insurer prides itself on delivering the best service and puts clients at the heart of the business.

Jason McClean, the firm’s director, says: “I think we try to solve property insurance problems for people at the best price possible. We are also amongst the lowest priced landlord insurance providers in the UK.

“If you go for the very lowest possible quote with a different insurance company, whenever you have a claim or need to speak to that insurer, you probably won’t be speaking with the same person. You may not welcome the long phone waits, multiple menu options and being cut off either; that’s my experience of big call centres and think many feel the same.

“Here at The Home Insurer, you can ring us up and speak to the same person who deals with your policy all year long. There is only a 15-second FCA prescribed message before you are talking to a real person.”

With The Home Insurer, you get peace of mind knowing you are covered for everything you need.

You also have the unique advantage of speaking to the same friendly adviser who deals with your insurance policy without going through a complicated automated system or being passed around different departments.

Peace of mind

Choosing the right building insurance can be tricky but with The Home Insurer, you have peace of mind knowing you are covered.

The most efficient way to get a personal quote with the best price and cover possible is to call the team on 01832 770965 so we can focus on your enquiry when you are ready and sitting down with your portfolio details to hand.

Alternatively, you can use the form below to request one of the team to give you a call back.

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