Buy to let buildings insurance for landlords

What is buy-to-let insurance?

Buy-to-let insurance covers the structure of the rental property against major risks. That includes the building's walls, roof, fixtures, and fittings. Mortgage providers will require proof of this cover as a condition of the loan.

Buy-to-let buildings insurance is different to standard buildings insurance because it accounts for tenancy occupancy and the associated risks. 

It's important to note that it's a separate policy from contents insurance, which only covers the landlord's items. That includes carpets and furniture if the rented property is furnished. 

Why do landlords need buy-to-let buildings insurance?

Buy-to-let buildings insurance is typically needed by the lender to protect their financial interest in the property. It provides cover for events like fire, explosion, storm, flood, and subsidence.

The sum insured should cover the building rebuild cost, not the market value. That's the total amount it would cost to rebuild the building from scratch.

Buy-to-let buildings cover provides financial security for the landlord's asset, which is often their most significant investment.

What is covered by buy-to-let buildings insurance?

Buildings insurance covers the structure of the property and covers repair and rebuild costs if it's damaged by a flood or fire. Let's take a look at what's covered by buy-to-let insurance:

• Damage to the structure of the home: Walls, floors, roof.
• Permanent fixtures and fittings: Built-in kitchens, bathrooms, pipework, and cables.
• Outbuildings: Garages and sheds. It's important to note that this is subject to policy limits, so always double-check what exactly is included. 

You may also want to consider:

• Multi-property cover: If you let out multiple properties, some policies cover multiple properties under one plan
• Contents insurance: This is helpful if you let out your property furnished. This will cover your own furniture, not your tenants'.

Policy optional extras

There are a variety of optional extras you may want to consider to better protect your property:

• Property owner’s liability: Essential for covering injury or damage claims made by tenants or visitors.
• Alternative accommodation: If the property is uninhabitable due to a claim. This is crucial as the landlord will be losing rent. 
• Trace and access: Covering the cost of finding the source of a leak.

Make sure you check the specific policy documents to find out the exact coverage level, and avoid any unexpected costs.

What isn't covered by a buy-to-let buildings policy?

We've looked at what is covered, but what won't be covered under a buy-to-let buildings policy? The following won't be included:

• Tenant’s contents: The belongings of the people renting the property.
• General wear and tear: Maintenance issues are the landlord's responsibility, not the insurer's.
• Unoccupied property: Policies have limits on how long the property can be vacant (e.g., 30-60 days). If you know your property is going to be unoccupied for an extended period, Uswitch's unoccupied home insurance guide can talk you through what's covered. 
• Poor maintenance: Damage caused by long-term neglect (e.g., damp from an unrepaired roof).
• Acts of war/terrorism: Standard exclusions in most policies.

How to get the best buy-to-let buildings insurance deal

If you're looking to cut the costs of your buy-to-let buildings insurance, here are a few ways you can save:

• Accurate rebuild cost: Use a professional calculator or valuation tool. Read more on Uswitch's home rebuild cost guide. 
• Property security: Invest in good alarms, locks, and location-based security features.
• Policy excess: Increasing the voluntary excess can lower premiums, but it also means paying more in the event of a claim.
• Combine cover: Buying a combined buildings and contents, or multi-property policy can also save money. 
• Compare quotes: Using a comparison tool like Uswitch makes finding quotes simple and efficient, allowing you to tailor cover to suit your needs.