Landlords
Insurance

The basic policy will cover damage to the building by a list of specified perils, including fire, lightning, explosion, aircraft, riot, vandalism, storm, flood, burst pipes, impact and subsidence.

It can also be extended (and we would always recommend this) to include accidental damage. That way, should someone puts their foot through a ceiling or spill gloss paint all over a staircase, you could be covered.

Once the core cover has been triggered, this will allow you to claim for loss of rental income if the tenant moves out and until the property is habitable again.

It also covers Property Owners Liability which a type of Public Liability for building owners.

It depends on so many factors but the main one is where is your property located, due to the fact that certain postcodes have higher risk of arson, flood or vandalism for example.

The price will also be linked to how much your property will cost to rebuild.

Your policy will cover you to rebuild the property, so the rebuilding cost is a figure the insurers need to know.

The market price is irrelevant, as the same property could sell for millions more if it is in London compared to another part of the UK, even though it’s the same physical structure. A landlords insurance policy will also include cover for items such as removal of debris (taking the damaged sections away), architects and surveyors fees, the costs of complying with local authority mandatory requirements etc.

You may be advised of this figure in your survey report when you purchase the property, but if not, Prizm Solutions can obtain this for you for a nominal charge using specialist software.

The alternative is to speak to a qualified chartered surveyor who can calculate the cost for you. Please don’t guess a figure, as the only person to lose out could be you if you are not adequately insured because of ‘average’ (see explanation in next question).