Do you need building insurance for landlords?

Posted: 19th Feb 2017

If you let a property, you may be counting the pennies, because everything you spend on the property may come out of the rent you are collecting. You may already be paying a managing agent, a mortgage and a handyman from time to time. So you may wonder, in a bid to cut costs, whether you really need to bother with building insurance for landlords?

You may wish to consider the following reasons for taking out a policy:

  • your mortgage – once you arranged your mortgage, did you just breathe a sigh of relief that you were accepted, set up the direct debit for the monthly repayment and file the documents in a safe place? You may wish to retrieve them to check whether you are obliged to the lender to insure the building’s structure. Some lenders may even insist on seeing a cover note before they release the funds to allow you to complete the purchase; and
  • your own peace of mind. What would happen if your buy to let property burnt down? Or, unlikely as it may seem, get destroyed in a freak earthquake or storm?

Such concepts may be the stuff of nightmares for your average landlord, but you may wish to think what may happen in these circumstances. Would you be able to fork out for the repair works from your own funds, or would have to abandon the property? What about your mortgage payments? How would you fund them?

Building insurance for landlords may give you the peace of mind that these expenses may be covered should anything terrible happen. Some providers, such as ourselves, even provide loss of rent cover if your property becomes uninhabitable for a period of time due to an insured event happening (such as a fire or flood).

How much will it cost?

The price of building insurance for landlords may depend on a number of factors, which may include:

  • the postcode of your property;
  • whether you have made any claims on any such policy before;
  • whether your property is of conventional construction method;
  • whether the property is in a flood plain; and
  • whether alarms and security locks have been fitted.

How long will it take to arrange?

Using a specialist service such as ours that allows you to get a quote and buy landlord insurance online, as well as provide professional and friendly telephone support for any questions you may have, means competitively-priced building insurance for landlords can typically be arranged the same day, giving you immediate peace of mind that your asset is properly protected.

We can also send your policy documents via email, if you want.