0:01 AM, 6th January 2025, About 2 days ago
Text Size
When renting out a property, you need to be careful of several risks.
Imagine your property being damaged by a fire, flood, or even a car collision – and worst of all, not having the proper insurance to cover the costs.
Here at Property118, we’ve teamed up with The Home Insurer for building insurance that could save you money.
Buildings insurance covers the structure of the property such as walls, floors and roofs. This also includes permanent built-in features in the property such as cabinets, baths and showers.
Buildings insurance can help landlords with repair or rebuild costs if an event such as a fire happens. If you don’t have the right cover in place, you could find yourself having to fork out thousands of pounds for repair work to the property.
Alongside, property damage building insurance also covers providing alternative accommodation. Some insurers provide alternative accommodation for up to two years following an insured event such as a flood however it’s best to check with your insurer to understand what coverage is available.
With rental properties you can have either temporary accommodation or ‘loss of rent’ but not both combined. Instead of paying for temporary accommodation costs, the insurer may opt to pay the landlord the monthly rental and it is then up to the landlord to deal with the tenant’s accommodation directly.
If your property is in a block of flats, make sure to check if the freeholder’s insurance has full coverage. Some cheaper insurance policies for blocks might not include things like temporary accommodation or loss of rent.
The cost of building insurance varies from insurer to insurer. Several factors are taken into consideration to determine the cost.
Most insurers look at the construction and size of the property including whether you have made any previous claims.
The location of the property is also considered because if you live in a flood-prone area your buildings insurance may cost you more. Frequent and costly repairs in your area can also lead to higher insurance premiums.
The Home Insurer will try to find the best price for all their clients, especially when it comes to renewals.
Jason McClean, director of The Home Insurer, said: “What I say to clients is we check your policies every year so it’s not automatically we increase the price every time.
“I know a lot of our policy owners this year will have received lower prices compared to last year as we shop around all our markets, and we want to try and give the best policy and price every year.”
Building insurance covers the structure of your property not the belongings inside the property.
If you want to cover the belongings, it’s best to take out landlord’s contents insurance which can cover appliances and furniture in the property.
It’s important to remember that a tenant will need their own insurance if they want to cover their own personal belongings with tenant’s contents insurance.
Other exclusions usually include damage caused by general wear or tear and the cost of getting rid of pests in the property. These are seen as maintenance issues.
If your fence or gate is damaged in a storm, be aware that some insurers may not cover them, as they aren’t considered part of the main structure. It’s also essential to check if your buildings insurance extends to garages and outbuildings for complete protection.
It’s always best to check with your insurers to see what isn’t covered in your building insurance.
Finding the right building insurance can be tricky. While comparison websites might offer lower prices, they often don’t provide the best service or comprehensive coverage.
With an insurance broker like The Home Insurer, there are no hidden fees and to offer you peace of mind The Home Insurer is authorised and regulated by the Financial Conduct Authority (FCA) and is a member of the British Insurance Brokers Association (BIBA).
It’s always frustrating dealing with endless call options and long waits to speak to a real person. However, with The Home Insurer, you’ll only hear a 15-second FCA-prescribed message before you’re connected directly to a real person.
With The Home Insurer, you get to speak with the same adviser who handles your policy, so you won’t have to deal with automated systems or being passed between different departments.
Jason says The Home Insurer truly value their clients.
He said: “I think the most valuable thing we have particularly with Property118 clients is they renew year after year.
“We go out of our way to have a relationship with them, understand their business and understand what their needs are and deliver to their needs.”
With The Home Insurer, you get peace of mind knowing you are covered for everything you need.
Previous Article
2025: A perfect storm for landlords AND tenants?
