Anonymous

I'm A Landlord, Is It Compulsory For Me To Have Building Insurance?

5 Answers

Hannah Barton Profile
Hannah Barton answered
Building insurance is not a legal requirement but many loan lenders require that a mortgage applicant has building insurance before they can proceed with the property loan. A proof of policy letter will need to be show when applying for a loan to prove to the lender that their investment is safe. If a landlord does not require a mortgage for their property, the do not necessarily need building insurance but it is recommended in the case of damage to the property which can be extremely costly to repair. It is not uncommon for damage to occur to rented properties, particularly if the landlord is away from the house and does not have the opportunity to carry out regular inspections.                Buildings insurance can be taken out to cover not just the replacement of the property itself, but also what is known as fixtures and fittings. This refers to the permanent installations in the home, including things like skirting boards, doors, light fittings, and kitchen and bathroom fittings.        Buildings insurance can also include things like garages, exterior walls and garden sheds. What is actually included may vary from one provider to another, so it can pay to check exactly what is included when getting a quote.        Landlords House Insurance is often recommended if you are renting out a property. It differs slightly from regular Building Insurance as it covers other problems that landlords may incur such as loss of rent or the unfortunate circumstances where tenants may fail to pay the rent or they must be taken to court. With the right landlord insurance policy at your side, your life in the buy to let market will be made much easier and you will have the piece of mind knowing that your investment and your income from the property is in safe hands.
Anonymous Profile
Anonymous answered
Not compulsory, but any landlord who doesn't ought to consider doing something else with their money.
Anonymous Profile
Anonymous answered
Building insurance will pay for a building to be rebuilt or repaired in the case of damage (as opposed to contents insurance, which protects your possessions). It is not a legal requirement to have building insurance for a property that you are renting out, but if you have a mortgage on the property then it is likely to be a requirement that the moneylender makes on you so that their investment is secure.

If you own the property outright, then legally you can do without it but it is well worth having, as the building is your investment vehicle. If the worst happens and your property is burnt down or flooded, then you will have to pay for repairs or rebuilding out of your own pocket. The only other way of recovering those costs is to pursue a compensation claim, but that will only be an option if you can prove that the damage is the direct result of someone's actions or negligence.
David P Hobart Profile
David P Hobart answered
If you are foolish enough to not have buildings insurance on a valuable asset then you must be extremely wealthy and can afford to stand any loss. Bear in mind that if a tenant is injured through fire or some defect with the building you will be personally sued for damages.
Anonymous Profile
Anonymous answered
As has already been mentioned, it is very important to have building insurance or else you could be setting yourself up for some serious financial woes.  The situation is not unlike that of farmers seeking crop insurance and garden insurance.  There is a perpetual risk of something going wrong with a service many people depend on, and this necessitates a form of insurance.

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