Do I need landlord building insurance?

If you own a rental property, you’ve probably come across landlord building insurance – but is it something you really need?

Whether you’re renting out a single flat or a portfolio of houses, protecting your investment is essential. In this post, we’ll explain what landlord building insurance covers, why it’s different from standard home insurance, and whether it’s a legal requirement.

What is landlord building insurance?

Landlord building insurance is a type of insurance policy designed specifically for rental properties. It protects the structure of the building including the walls, roof, floors, fixtures, and fittings, against risks like fire, flood, storm damage, vandalism, or subsidence.

It typically doesn’t cover the tenant’s belongings (they’ll need their own contents insurance), but it can include additional features like:

Loss of rent if the property becomes uninhabitable
Landlord liability cover in case a tenant or visitor is injured on the premises
Accidental damage caused by tenants
Legal expenses for evictions or disputes

Is landlord building insurance a legal requirement?

Unlike gas safety certificates or energy performance ratings, landlord building insurance isn’t a legal requirement. However, that doesn’t mean you can go without it.

Most mortgage lenders require landlord building insurance as a condition of the loan. Even if you own the property outright, not having cover could put you at serious financial risk.

Imagine a burst pipe flooding the property, or a fire damaging the roof. Repairs could run into tens of thousands of pounds—and if you can’t rent the property out while it’s being fixed, you may lose rental income too. That’s where insurance steps in.

How is it different from normal home insurance?

Standard home insurance is designed for owner-occupiers. If you’re renting out your property, even on a short-term basis, most insurers won’t pay out under a regular policy.

Landlord building insurance takes into account the different risks that come with renting, such as tenant damage, legal claims, or loss of rent. If you’re relying on rental income or have tenants living in the property, it’s worth having the right type of cover in place.

What should I look for in a policy?

Not all landlord policies are created equal. When comparing quotes, look out for:

Rebuild cost coverage: Make sure the policy covers the full cost of rebuilding the property, not just the market value.
Loss of rent cover: Especially important if you’d struggle financially without rental income.
Liability insurance: To protect against injury claims.
Unoccupied property cover: If your property is empty between tenants.
Optional extras: Things like boiler cover or emergency call-out services.

It’s also a good idea to check whether there are exclusions for certain tenant types (e.g., students or benefit claimants) if this applies to you.

While landlord building insurance isn’t a legal requirement, it’s strongly recommended for anyone renting out property. Think of it as a safety net, not just for the bricks and mortar, but for your income and peace of mind.

At Jacobs Steel, we work with landlords across West Sussex to help them make smart, informed decisions about their rental properties. Whether you’re new to letting or managing a portfolio, we’re here to support you every step of the way.

Thinking of letting your property?

Whether you’re preparing your first rental or growing your portfolio, our friendly Lettings team is here to help. Get in touch with your local Jacobs Steel branch today for expert advice and a free lettings valuation.