Landlord buildings insurance covers the structure of a property you rent out (walls, roof, floors, and fixtures like kitchens and bathrooms) against damage from events such as fire, flood, storm, escape of water and subsidence. The sum insured should be the cost of rebuilding the property, not what it would sell for. Standard home buildings insurance usually won't cover a property once it's let, so you need a policy written for landlords.
This guide explains how buildings cover for landlords works, how to set the rebuild cost, what your lender expects, and when you need a full landlord policy instead. For a broader overview of landlord cover, see our landlord insurance UK guide.
Buildings-only vs a full landlord policy
A buildings-only policy insures the structure. A full landlord policy usually adds:
Property owners' liability, for injury or damage to tenants, visitors or the public caused by the property,
Loss of rent, if the property becomes uninhabitable after an insured event,
Landlord's contents, if you supply furniture, white goods or carpets,
optional legal expenses and rent guarantee (see our rent guarantee insurance guide),
optional accidental and malicious damage cover.
If you own a leasehold flat, the freeholder normally insures the building, and you need cover for your contents, fixtures and liability instead. See our guide to landlord insurance for a leasehold flat.
Rebuild cost, not market value
The sum insured should be what it would cost to clear the site and rebuild the property to the same standard, including:
demolition and site clearance,
materials and labour at current prices,
professional fees (architects, surveyors),
complying with current building regulations,
outbuildings, garages, walls and fences if they're included.
It doesn't include the land, so the rebuild cost can be higher or lower than the market value. A small terraced house in an expensive area may cost much less to rebuild than to buy. A large period property in a cheaper area may cost more.
The Building Cost Information Service (BCIS), part of the Royal Institution of Chartered Surveyors, publishes a free online rebuild cost calculator for common house types. For unusual properties, listed buildings or conversions, a professional rebuild valuation from a chartered surveyor is safer.
Why underinsurance matters
If the sum insured is too low, many policies apply average (also called averaging or underinsurance). The insurer reduces any claim in proportion to the shortfall. For example, if you're insured for 70% of the true rebuild cost, the insurer may pay only 70% of a partial claim, not just cap a total loss.
To avoid it:
check the rebuild cost when you buy and at every renewal,
update it after extensions, loft conversions or major works,
consider index-linking, which adjusts the sum insured over time,
keep the evidence of how you calculated it.
What your mortgage lender expects
Buy-to-let lenders usually require buildings insurance from completion for at least the rebuild cost, and many ask for their interest to be noted on the policy. They may also require you to tell them if the property becomes empty or if you change how it's let. Read your mortgage offer for the exact conditions.
If you have several mortgaged properties, a portfolio policy can simplify this. See our page on portfolio and limited company landlord cover.
What buildings cover usually includes
Most landlord buildings policies cover damage caused by:
fire, smoke, explosion and lightning,
storm and flood,
escape of water and oil (burst pipes, leaking tanks),
subsidence, heave and landslip (often with a higher excess),
theft or attempted theft (often limited if the property is empty),
impact by vehicles or falling trees,
malicious damage by third parties (damage by tenants is usually a separate option).
Accidental damage to the building, such as a tenant putting a foot through a ceiling, is often an optional extra.
Common exclusions and conditions
Unoccupancy. Cover is often reduced after the property has been empty for a set period, commonly 30 to 90 days depending on the policy. Tell your insurer before that limit. See our void and unoccupied property page.
Wear and tear and gradual deterioration aren't covered.
Maintenance. Insurers expect the property to be kept in good repair. A claim can be reduced if neglect caused or worsened the damage.
Works. Major building or renovation works usually need to be declared before they start.
Safety compliance. Gas and electrical checks aren't insurance conditions in every policy, but a lapse can complicate a fire claim. See our guides to gas safety certificates and EICRs.
Retrofit and energy works change your rebuild cost
If you're improving the property's EPC rating ahead of the planned 2030 target, works such as solid wall insulation, heat pumps, solar panels or batteries can change both the rebuild cost and the risk. Tell your insurer and update the sum insured. Our guide to EPC C by 2030 for landlords explains the timeline.
Tips to get the right cover
Calculate the rebuild cost properly, not from the purchase price.
Describe the property accurately: construction type, age, number of storeys, flat roof areas, and whether it's listed.
Declare who lives there (a family, sharers, students, an HMO) and any licensing.
Choose an excess you could afford to pay on a claim.
Keep photos and records of the property's condition and any improvements.
Making a buildings claim as a landlord
If something goes wrong, a few steps make the claim smoother:
Make the property safe and stop further damage, for example by turning off the water at the stopcock after a leak. Insurers expect you to limit the loss.
Tell your insurer promptly, and your tenant if they aren't already aware. Most policies have a notification condition.
Take photos and video before any clean-up or emergency repair, and keep damaged items until the insurer says you can dispose of them.
Keep receipts for emergency work, such as a plumber's call-out or boarding up a window.
Check whether loss of rent applies. If the tenant has to move out while repairs are done, loss of rent or alternative accommodation cover may help, up to the policy limit.
Provide your compliance documents if asked, including the gas safety record and EICR.
If your flat is leasehold, the block policy usually responds to damage to the structure, so contact the managing agent first. See our guide to landlord insurance for leasehold flats.
Frequently asked questions
Is buildings insurance a legal requirement for landlords?
No law requires it, but your mortgage lender almost certainly does, and without it you would carry the full cost of rebuilding yourself.
Should I insure for the market value or the purchase price?
Neither. Insure for the rebuild cost, which you can estimate with the BCIS calculator or a surveyor's valuation.
Does landlord buildings insurance cover my tenant's belongings?
No. Tenants need their own contents insurance. Your policy can cover contents you supply, such as furniture and white goods.
What happens if my property is empty between tenants?
Cover may be restricted after the policy's unoccupancy period. Tell your insurer before that limit and ask about unoccupied cover.
Do I need buildings insurance for a leasehold flat?
Usually not, because the freeholder insures the building under the lease. Check the lease and ask for the freeholder's policy summary.
Does buildings insurance cover loss of rent?
Not usually on its own. Loss of rent cover is normally part of a full landlord policy or an add-on.
Check your sum insured
Send us your current landlord policy or renewal and we'll review it and come back with quotes from the insurers on our panel. Start with your buy-to-let details.
Meshed is a trading name of Mesh'd Limited, authorised and regulated by the Financial Conduct Authority (FRN 1033248). We charge a flat 10% broker fee. This guide is general information, not legal advice.
Vincent Liu
Co-founder & CTO
