Landlords typically need to be fairly hard-nosed about their business if they are going to survive and prosper. A very businesslike attitude to landlord building insurance may also be highly advisable if potential disaster is to be avoided.

The nature of property

Whether you are an owner-occupier or a landlord, owning property constitutes significant risk.

This is not something that can be safely overlooked or ignored.

Disaster can strike property at almost any time and the repair/restoration costs may be significant and even beyond the financial reach of some people.

That is why landlords insurance exists – to offer protection to your property and at the same time, to your business and personal finances.

The risks

The risks of owning property are ever-present for all and include things such as natural disasters, fires, burglary and so on. If your property is furnished, then those risks may also apply to your goods and contents.

Inevitably, the risks facing a landlord and his or her business are complicated by the fact that tenants are involved.

That is why landlord building insurance typically not only offers buildings and contents insurance but also third party liability provisions.

Some risks are even more specific to landlords and that is why some landlords insurance may offer you cover for things such as a loss of rental income (where that is due to an insured risk) and malicious damage caused by tenants.

Keep in mind though that not all policies will offer such additional protection and it is important to read any landlords insurance policy (and its terms and conditions) before you decide which cover is likely to be suitable for you.

Landlords – not owner-occupiers

In a sense, landlord’s insurance is a form of commercial insurance cover, as your risks are business risks as well as property risks.

That is why, if you are renting out property, you cannot use owner-occupier buildings and contents insurance. That form of policy is not designed for the specific circumstances that may be encountered in a buy to let arrangement.

Do keep in mind that if you currently have an owner-occupier policy, it may become invalid if you rent out your property or even part of it. Even if you are only renting your property out infrequently for holiday purposes, it may be highly advisable to seek appropriate landlord building insurance.