Building Insurance Landlords

Building insurance landlords

As a landlord, you may have a lot to worry about. The last thing you probably want is to need to add your building insurance landlords to that list.

Yet this is exactly the position you could find yourself in if you do not have appropriate landlords insurance policy in place.

What are the risks?

Whatever type of premises you own, they will by definition be at risk. There are the 'no surprises' risks such as:

Flood, fire and storm damage etc. It is important to note that the moment you rent out all or part of your premises, it immediately becomes 'commercial' and vulnerable to additional risks that may not apply in a residential scenario. These may include, wilful damage caused by tenants or employees, accidents caused by the tenants or their property, vandalism by third parties when empty between lettings and so on.

Other risks include, injuries caused to tenants as a result of living in your property. Your building insurance landlords may have to cope with all these risks and more.

Who needs building insurance insurance?

Normal 'home insurance' insurance may offer little or no protection even if you also live in the same premises as your tenants. In fact, operating commercially from your home may in some circumstances invalidate your existing domestic buildings cover.

Typically, while buy to let buildings insurance for may be a little more expensive than domestic owner-occupier cover, the risks it covers are greater - for example, with some policies it can protect you financially should a tenant 'do a runner' and leave the rent payments in arrears.

And contrary to some popular myth, insurance companies do in fact have ways of finding out whether or not your property is being used for rentals - particularly in the event of a claim.

Making a false declaration of 'usage' when applying for insurance may result in you being banned from future insurance applications and making an actual claim under the same circumstances may result in prosecution.

If you have a mortgage on the property you may also find that the conditions demand that the correct form of buildings insurance is in place. This is particularly important to take into account in a situation where you have changed the occupation category from 'owner-occupier' to 'rental' after the mortgage and original insurance was taken out.

Taking specialist advice from ukinsurancenet is highly advisable. you can also get more information from our landlords insurance guide.