Leading Buy‑to‑Let Buildings Insurance Providers

Investing in buy‑to‑let property is a significant commitment and protecting your investment with an insurer is crucial. Choosing the right buildings insurance helps safeguard your property from unexpected events such as fire, flood and subsidence. But with so many insurers and brokers in the market, how does one select a suitable one? This article explores some of the leading providers of buildings insurance and specialist home insurance for buy‑to‑let landlords.

What Is Buildings Insurance?

Buildings insurance is a specialised form of insurance cover that protects the physical structure of a property, such as walls, roof and floors, and fixtures and fittings such as built-in appliances, lighting, fixed flooring and fitted carpets, from damage caused by events such as fire, smoke, flood, storm, earthquake, explosion, lightning, escape of oil and escape water.

Typically, it covers the cost of repairs or, in extreme cases, rebuilding the property up to the policy’s specified limits. This insurance does not cover general wear and tear. Nor does it over contents, such as furniture. These risks can be  addressed by separate contents or landlord-specific policies.

Who Needs Buildings Insurance?

• Landlords, especially those with a mortgage on the property, must have buildings insurance in place. Typically, lenders insist on it as a condition of providing a buy‑to‑let mortgage.

• Homeowners with a mortgage are similarly required to have buildings insurance cover. Although it is optional for outright owners, it is still highly recommended for protection against costly disasters.

• Leaseholders may find that buildings insurance is taken out by the freeholder and payment towards it is included in their service charge. If not, joint cover is necessary as specified in the lease agreements.

Why Buildings Insurance Is Essential for Landlords

1. Mortgage compliance and financial protection:

Buy‑to‑let mortgages typically require your property to be insured. Without it, you risk lender enforcement and potential repossession.

2. Safeguarding your investment:

Structural damage caused by events such as fire, flood, storm, explosion, lightning, escape of oil or escape water can be financially crippling. Buildings insurance ensures you can repair or rebuild with the use of the cover.

3. Rental continuity:

In severe cases, tenants may need rehousing and you could lose rental income. Many landlord policies include temporary accommodation clauses, which are crucial for business continuity.

4. Legal responsibility and liability:

Landlords are legally obliged to provide safe and well‑maintained accommodation. Some buildings insurance policies include public liability cover, which handles costs if tenants or visitors are injured due to structural damage.

5. Risk management for unoccupied periods:

Buy‑to‑let properties may be empty between tenants. Specialist landlord policies extend buildings insurance to cover empty periods, avoiding gaps that standard cover may exclude.

6. Rent guarantee and tenant damage:

Though not part of basic buildings insurance, landlord-focused policies, such as specialist house insurance, can sometimes offer rent guarantee and malicious tenant damage cover, protecting your income and the property if tenants default or cause harm.

Leading Insurers for Landlords to Consider

1. Alan Boswell Group

According to Which, Alan Boswell Group ranked 84% for policy score in general and 80% for buildings insurance. This cover provides robust protection in the event of structural damage caused by fire, flooding or accidental impact. Additionally, you can get coverage for liability and tenant protection. Premiums start at £118 per year or £10.52 per month, with the precise cost depending on the property size and construction type. Click here to get a quote from Alan Boswell Group.

2. Direct Line for Business

Direct Line is a well-known competitor and alternative to Alan Boswell Group, with a policy score of 80% and a buildings insurance score of 78% from Which. Direct Line offers comprehensive buildings insurance covering structural damage, water escape, boiler damage and tenant rehousing due to an insured event. Their policy also includes public liability and can be extended to multiple properties under one policy. Starting premiums are not expressly listed on Direct Line’s website. Click here to get started with a quote.

3. Towergate Insurance

Towergate offers landlord insurance that comes with a range of benefits. They are brokers that partner with several leading insurers, ensuring that they tailor a bespoke solution suited to your particular requirements as a landlord. This can be helpful for landlords with less straightforward rental situations that require specialist home insurance. Towergate can assist landlords to insure a range of property types and provides flexible add-ons. Premiums for a single property can start at £200 per year, but given the process offered by Towergate, quotes may vary from landlord to landlord. Click here to receive a quote.  

Other Noteworthy Insurers

1. AXA: Offers standard buildings insurance, property owners' liability and subsidence cover in their landlord insurance policy.

2. LV: Offers buildings insurance and high-quality contents cover.  

3. Saga: Specialises in insurance policies for landlords over 50.

Why Consider Specialist Home Insurance?

Buildings insurance only protects the structure itself. By selecting specialist insurance, landlords can access further tailored features designed for rental properties, such as:

• Tenant damage, malicious or accidental

• Loss of rent or rent guarantee

• Legal and liability protection for landlords

• Unoccupied property cover

Conclusion

For most buy‑to‑let landlords, buildings and specialist insurance is a smart investment. When selecting an insurer, it is essential to compare quotes, read policy documents carefully, and ensure that your chosen policy reflects your buy-to-let portfolio structure and tenant profile.

FAQs

Q. What is the difference between buildings insurance and landlord insurance?

A. Buildings insurance covers the physical structure of a property, such as walls, roof and floors, and fixtures and fittings, such as built-in appliances, lighting, fixed floorings and fitted carpets, from damage caused by events such as fire, smoke, flood, storm, earthquake, explosion, lightning, escape of oil and escape water.  

Landlord insurance, on the other hand, is a more comprehensive policy designed specifically for rental properties. It usually includes buildings cover, but may also offer additional features such as public liability, loss of rent, accidental or malicious damage by tenants, legal expenses and contents cover.

Q. Why is buildings insurance essential for landlords?

A. Landlords have a financial and legal responsibility to maintain a safe and habitable property. Buildings insurance provides peace of mind in the event of major damage caused by events such as fire, smoke, flood, storm, earthquake, explosion, lightning, escape of oil and escape water. Without it, the cost of repairs or rebuilding would fall entirely on the landlord. Typically, mortgage providers also require valid buildings insurance as a condition of the loan.

Q. Does buildings insurance cover tenant-related issues?

A. Basic buildings insurance does not cover tenant-related problems such as unpaid rent or damage caused by tenants. However, some landlord-specific policies include optional extras that cover:

• Malicious or accidental tenant damage

• Loss of rental income due to property damage

• Legal expenses for tenant disputes

These extras are usually part of a specialist house insurance policy tailored for landlords.

Q. Do I need contents insurance as a landlord?

A. If your property is furnished or partially furnished, contents insurance is recommended. For example, it covers furniture and furnishings that belong to you. Tenant belongings are not covered by landlord contents insurance and they will need to obtain their own cover if they so wish.

Q. Is landlord insurance legally required?

A. While not a legal requirement, landlord insurance is strongly advised. In most cases, buy-to-let mortgage lenders require buildings insurance at a minimum. Even if your property is mortgage-free, having insurance in place protects your investment from potentially substantial financial loss.