Landlord Building Insurance

Why your Landlord Building Insurance needs to Include Property Owner Liability

As a landlord you will undoubtedly have some form of landlord building insurance in place, mainly because your buy to let mortgage provider would have insisted you had it before they approved the mortgage. General landlord building insurance covers accidental damage to the property itself but little else, so what would happen if one of your tenants were to get injured at the same time that accidental damage occurs in the property?

A few common examples

Let’s say that the roof of your rental property develops a leak but neither you nor the tenants realise there’s a problem until it becomes so severe that the bedroom ceiling collapses one night. Unfortunately your tenants decide to have an early night on that particular night and the majority of the ceiling lands on the bed…and them.

One of the tenants suffers nothing but cuts and bruises but the other tenant requires hospital treatment and on-going physiotherapy for a severely broken leg and arm. They can’t work for 6 months and decide to claim against your landlord insurance for loss of earnings and other expenses.

 Or how about this one…

Let’s say that the living room carpet in your rental property starts to fray at the doorway to such an extent that it becomes a trip hazard. You know it is frayed and the tenant knows it is frayed but neither of you remedy the problem. One day your tenant has guests over for dinner and one of the guests’ trips over the carpet and falls into the wall, banging their head. They accidentally break the stair banister as they grab hold of it but this doesn’t stop them from hurting themselves and requiring a trip to A&E.

The Outcome with just landlord building insurance

Obviously even the most basic landlord building insurance policy will cover the repair of the ceiling in the first example and the wall, carpet and stair banister in the second example, but who will pay for the injury claims if they are made? The answer is that you as the landlord will pay from your own pocket, and in some cases the claims can run into many thousands of pounds.

The outcome with landlord building insurance that includes property owner liability

A landlord building insurance policy that includes, among other things, property owner liability will not only cover the repairs to the house, it will also cover any personal injury claims made by your tenants. Some policies cover up to £5million worth of liability claims and so you should never have to pay a penny from your own pocket regardless of the claims your tenants might make in the event of an accident.  

In conclusion, it is easily worth spending a few pounds more each month on your landlord building insurance policy so that it includes property owner liability insurance. After all, you never know when you may need it.