What Buildings Insurance Do I Need for My Buy-to-Let?
If you own a buy-to-let property, standard home insurance won’t provide sufficient cover; you’ll need specialist landlord insurance to protect you from the various risks associated with letting.
Of the range of insurance policies available to landlords, buildings insurance is the only one that is compulsory. That said, when choosing your insurance, you will almost certainly want to tick more boxes than just buildings insurance.
Types of Insurance for BTL
Here is a breakdown of the different types of landlord insurance.
Buildings insurance (compulsory)
This covers rebuilding costs in the event of a fire or flood, and usually includes the cost of replacing kitchen and bathroom fittings.
Contents insurance (highly advised)
This covers you for damage to carpets, furniture, electrical and decorative items. This is especially important if you are letting your property fully or part-furnished. Note that this insurance only covers your possessions, not those of your tenants.
Liability insurance (highly advised)
If an accident occurs at your property resulting in injury or death, liability insurance will foot the bill if you are sued by the tenant.
Home emergencies (highly advised)
Certain incidents like a burst pipe or leak often require immediate attention, so you’ll need 24/7 access to tradesmen who can quickly come and fix the problem. If your insurance includes home emergencies, you could be covered for the cost of maintenance.
Loss of rent (nice to have)
A tenant’s circumstances can change on a dime, and it may result in them being no longer able to afford the rent. Your buy-to-let insurance could cover you for loss of rent if your property is uninhabited for a period of time.
Multi-property cover
For landlords with more than one property, it is possible to get a blanket cover for all of them, which would be far easier - and probably cheaper - than juggling multiple policies.
How much is landlord insurance?
As a general rule, expect to pay around £150 per year for a solid policy.
As with any kind of insurance, your best bet is to shop around for the best deals. Pay attention to the details and think about your long-term needs. It may be tempting to go for the cheapest option, but this could come back to bite you later down the line. You need an insurance policy that is tailored to your needs.