Standard home insurance does not cover let properties. Using a standard policy for a let property invalidates cover from day one. Always arrange landlord-specific buildings insurance before your first tenant moves in.
Buildings insurance is not the most exciting aspect of being a landlord, but it is one of the most financially significant. A single uninsured fire or flood can destroy a property worth hundreds of thousands of pounds. If you have a buy-to-let mortgage, your lender will require valid buildings insurance as a mortgage condition — and failure to maintain it gives them grounds to demand immediate repayment. This guide explains what landlord buildings insurance covers, what it excludes, and what to look for when choosing a policy.
What landlord buildings insurance covers
A standard landlord buildings insurance policy covers the structure of the building — walls, roof, floors, windows, fitted kitchens and bathrooms, permanent fixtures — against a defined list of insured perils. Standard covered perils include:
- Fire and smoke damage: Including fire started by a tenant, fire from adjacent properties, and smoke damage without direct fire. This is the most commonly claimed peril
- Flood and storm damage: Water ingress from external flooding, storm damage to roof or structure. Note: internal flood from burst pipes is typically covered under escape of water, not flood
- Escape of water: Damage from burst or leaking internal pipes, tanks, or appliances — one of the highest-frequency claims in rented properties
- Subsidence and ground heave: Usually included but with a higher excess (typically £1,000+). Properties on clay soils in certain areas of England carry higher subsidence risk
- Malicious damage and vandalism: Including damage caused by tenants or third parties. Many policies require that criminal damage by the tenant is demonstrated for this to apply
- Impact damage: Vehicle impact, falling trees, falling aerials or satellite dishes
- Theft: Usually covers theft of fixtures (copper pipes, lead flashing, etc.) by external parties. Internal theft by tenants may require a specific extension
What landlord buildings insurance does NOT cover
Understanding exclusions is as important as understanding cover. Common exclusions include:
- General wear and tear: Gradual deterioration from normal use — a roof that fails after 40 years is maintenance, not an insured event
- Vermin and pest damage: Rat, mouse, or insect damage is typically excluded or requires a specific extension
- Unoccupied property: Most policies void or significantly restrict cover if the property is unoccupied for more than 30–60 consecutive days. Notify your insurer of void periods above the threshold — many offer unoccupied property extensions
- Defective workmanship: Damage caused by poor-quality repair or building work is excluded. Use qualified contractors and retain completion certificates
- Faulty design or materials: Original construction defects are not covered. Non-standard construction types (concrete frame, timber frame, thatched roof) may require specialist insurers
- Tenant contents: The tenant's furniture, clothing, and personal belongings are not covered by landlord buildings insurance — tenants should arrange their own contents insurance
- Loss of rent from non-payment: Tenant rent arrears are not covered by buildings insurance — they are covered by separate rent guarantee insurance
Landlord buildings insurance vs standard home insurance
| Feature | Standard home insurance | Landlord buildings insurance |
|---|---|---|
| Let properties covered | No — explicitly excluded | Yes — purpose-designed |
| Tenant liability | Not covered | Public liability / property owner's liability included |
| Malicious tenant damage | Not covered | Usually included (check policy) |
| Unoccupied void periods | Usually 30 days max | Often 90 days with notification |
| Loss of rent | Not included | Usually included for uninhabitable periods |
| Emergency call-out cover | Sometimes included | Often included as standard |
| Legal expenses | Sometimes available | Often available as extension |
Contents insurance for furnished let properties
If you let the property furnished — meaning you provide beds, sofas, white goods, and other moveable items — you should also arrange landlord contents insurance alongside buildings cover. Key points:
- Covers your furnishings, not the tenant's: Landlord contents insurance covers the items you own and have provided for the tenancy. The tenant's personal belongings are outside the scope
- Accidental damage extension: Standard contents policies cover named perils only. An accidental damage extension covers unintentional damage by tenants or their guests — often worth including in furnished lets
- Malicious damage by tenants: Check whether malicious damage by tenants specifically is covered — some policies exclude this or limit the claim amount
- Inventory: A detailed check-in inventory with photographs is essential for any contents claim. Without an inventory it is very difficult to evidence the condition and existence of items before the tenant moved in
Property owner's liability insurance
Most landlord buildings insurance policies include property owner's (public) liability insurance as standard. This covers you if a third party — including a tenant — suffers injury or property damage as a result of a defect in your building. For example, if a tile falls from your roof and injures a passer-by, or a tenant is injured by a loose banister, property owner's liability cover responds.
- Minimum cover level is typically £1 million — consider £2 million or £5 million for larger or more complex properties
- Liability arising from HHSRS hazards you knew about and failed to repair would typically be excluded under the public policy defence ('ex turpi causa') — always repair known hazards promptly
- Directors' liability may be relevant if you hold properties through a limited company — check with your insurer
Buildings insurance and the Renters' Rights Act 2025
The Renters' Rights Act 2025 does not directly require landlord buildings insurance. However, several indirect connections are worth noting:
- Awaab's Law: Damp, mould, and HHSRS hazards must be investigated and repaired within statutory timeframes. If a hazard is caused by an insured event (e.g. escape of water causing structural damp), making an insurance claim promptly is the most efficient way to comply with the repair obligation
- Possession proceedings: If you use Ground 1A (sale with vacant possession) or Ground 1 (own occupation) and the property suffers fire damage in the interim, buildings insurance pays for reinstatement. A property in poor condition will achieve a significantly lower sale price
- Civil penalties: Maximum civil penalties under the RRA 2025 reach £40,000 per offence. Legal expenses insurance (available as a buildings policy extension) covers landlord legal costs in defending enforcement action or pursuing possession
How to choose the right policy
- Confirm the correct rebuild cost (not market value) as your sum insured. Use a RICS-accredited rebuilding cost calculator or commission a surveyor's reinstatement assessment for valuable or non-standard properties
- Check the unoccupied void period allowed — policies range from 30 to 90 days. If you regularly have longer void periods, choose a policy with notification provisions rather than blanket voiding
- Verify malicious damage by tenants is explicitly covered, not excluded
- Confirm loss of rent cover is included and check the maximum period (typically 12 or 24 months) and the basis of calculation (weekly rent or annual rent percentage)
- Check the non-standard construction position if your property is non-traditional build (timber frame, flat roof, thatched, listed, or pre-war concrete)
- Consider a legal expenses extension covering landlord-tenant disputes, possession proceedings, and regulatory defence
- For portfolios of 3 or more properties, compare portfolio policies against individual policies — portfolio cover is typically 15–25% cheaper per property and simplifies administration
Insurance covers the financial cost of damage. LetSafe UK's compliance documents — Gas Safety Record, EICR, PAT testing log, and property inspection reports — document your maintenance record and are essential evidence in any insurance claim investigation.
This guide is accurate as at 6 June 2026. It is provided for information purposes only and does not constitute legal or financial advice. Always read the full policy document and key facts document before purchasing any insurance product.