Buildings Insurance
Buildings insurance covers the cost of repairing or rebuilding the physical structure of a property if it is damaged or destroyed by an insured event. For landlords, it protects the fabric of the rental property, the walls, roof, floors, windows, doors, fixed fixtures and fittings, and permanent installations such as fitted kitchens and bathrooms, against events including fire, flood, storm, subsidence, burst pipes, vandalism, and collision by vehicles. It does not cover the tenant's belongings or the landlord's own contents. UK law puts the duty to insure the building on the landlord, even when tenants help cover the cost through the rent or service charge.
Buildings insurance is not a legal requirement for all landlords, but it is almost always a condition of a buy-to-let mortgage, the lender requires adequate cover to protect its security interest in the property. Landlords who own properties outright are not legally compelled to hold it, but without cover they bear the full cost of any structural damage or total loss from their own resources.
What buildings insurance covers
A standard landlord buildings insurance policy covers the structure of the property itself, typically including:
Walls, roof, floors, ceilings, and windows
Fixed doors, gates, and boundary walls
Fitted kitchens, bathrooms, and built-in wardrobes
Pipes, drains, cables, and other service installations within the property
Outbuildings such as garages and garden sheds within the property boundary
The cost of alternative accommodation for the tenant if the property is uninhabitable following an insured event
Debris removal and professional fees associated with rebuilding
Some policies also include accidental damage and loss of rent cover as standard; others offer these as optional extras. Landlords should check policy schedules carefully, particularly whether accidental damage by tenants is included, and whether cover extends to malicious damage caused by tenants.
What buildings insurance does not cover
Standard buildings insurance excludes:
Gradual deterioration and wear and tear
Damage resulting from poor maintenance or neglect
Mechanical or electrical breakdown
Flood damage where the property is in a designated high-risk flood zone (often requires separate or specialist cover)
Damage occurring while the property is unoccupied beyond the policy's void period limit, typically 30 or 60 days
The void period exclusion is particularly important for landlords. Most standard policies restrict or withdraw cover after 30 or 60 consecutive days of vacancy. Landlords who anticipate a longer void, between tenancies, during major works, or following eviction, should notify their insurer and seek an extension of cover for the void period. Failing to do so can invalidate a claim made during the unoccupied period.
Rebuild cost versus market value
One of the most consequential decisions in arranging buildings insurance is setting the sum insured correctly. The sum insured should reflect the rebuild cost of the property, the cost to demolish, clear the site, and construct an equivalent building from scratch, not its market value or purchase price.
The rebuild cost is often significantly different from the market value. In some areas, particularly in London and the south-east, market values far exceed rebuild costs because of the value of the land. In other cases, listed buildings, unusual construction methods, or older properties using materials that are now scarce, the rebuild cost can exceed market value. Underinsuring based on market value is one of the most common and costly mistakes landlords make. In the UK, 9 out of 10 buildings are insured for the wrong amount. If a property is underinsured, insurers may apply the principle of average to any claim, reducing the payout proportionately to the degree of underinsurance.
The Association of British Insurers (ABI) provides a home rebuild cost calculator that landlords can use to check their sum insured. Specialist surveyors can also provide a formal rebuild cost assessment for more complex or unusual properties.
Freehold versus leasehold responsibility
In a freehold property, a house or other building where the landlord owns the land and structure outright, the landlord is solely responsible for arranging and paying for buildings insurance.
In a leasehold property, such as a flat in a block, buildings insurance responsibility typically rests with the freeholder or the management company, with the cost recovered from leaseholders through the service charge. A landlord who owns a leasehold flat and lets it out should check their lease to confirm:
who holds the buildings policy;
what the policy covers;
whether letting the flat is permitted under the terms; and
whether the freeholder's insurer needs to be notified.
Failing to check can mean the policy is voided if a claim arises during a tenancy.
A landlord who lets a leasehold flat is not usually responsible for arranging their own buildings policy, but they remain responsible for checking that adequate cover exists. If the freeholder fails to insure adequately, the leaseholder may have grounds for action under the lease or under the Landlord and Tenant Act 1985.
Buildings insurance versus landlord insurance
Buildings insurance covers the structure only. It does not protect against loss of rental income, liability claims from tenants or visitors, legal expenses arising from disputes, or damage caused by tenants beyond the scope of a standard buildings claim. Buildings insurance is an allowable expense for tax purposes, but cover alone does not protect against loss of rent, liability claims, or legal expenses, for a guide to what a complete landlord insurance policy should include and how providers compare, see our best landlord insurance guide for 2026.
Most insurers offering landlord-specific products combine buildings cover with these additional elements into a single policy designed for the specific risks of letting residential property. A standard home buildings insurance policy is not equivalent, many exclude or restrict cover during periods of tenancy by a paying occupier.
In our experience working with self-managing landlords, the most common gaps are the void period limit (not extended when a property sits empty between lets) and the accidental damage exclusion (not upgraded when a tenancy starts with a higher-risk occupant profile). Both are negotiable at the point of renewal.
Landlords using August can store their buildings insurance certificate, renewal date, and policy schedule against each property, with automatic reminders before renewal so cover never lapses unnoticed during a tenancy or between lets.
Frequently asked questions
Is buildings insurance a legal requirement for landlords?
It is not a legal requirement in itself, but most buy-to-let mortgage agreements require it as a loan condition. Landlords without a mortgage are not compelled by law to hold buildings insurance, but they assume full financial risk of structural damage or total loss without it. The sensible position for any rental property owner is to hold adequate buildings cover at all times.
Who is responsible for buildings insurance in a block of flats?
In most leasehold blocks, buildings insurance is arranged by the freeholder or the management company and the cost is apportioned to leaseholders through the service charge. A landlord who owns a leasehold flat and lets it out should check their lease to confirm who holds the policy, whether letting is permitted, and whether the insurer needs to be notified of the tenancy.
Does buildings insurance cover damage caused by tenants?
It depends on the policy. Standard buildings insurance may cover accidental damage by tenants but typically excludes deliberate or malicious damage. Specialist landlord buildings insurance policies are more likely to include tenant damage as a named peril. Always check the specific policy wording before assuming cover exists for tenant-caused damage.
What happens to buildings insurance during a void period?
Most policies restrict or suspend cover after 30 or 60 consecutive days of vacancy. Landlords anticipating a longer void should notify their insurer before the threshold is reached and seek an agreed extension of cover. A claim made during an unnotified void period may be refused entirely.
