Who Pays Building Insurance – Landlord or Tenant?

Part of being a landlord is knowing what responsibilities fall on your shoulders vs your tenants. In this article, we’re specifically covering building insurance and whether the landlord or tenant is expected to cover this.

Building insurance covers the outer shell of a property, including fixtures and fittings. The landlord is responsible for providing building insurance, and it’s important to protect your property investment. Should any doors, baths, kitchen units, walls or the roof be damaged, for instance, this can be covered with building insurance. While there’s no legal requirement to have building insurance, it’s highly recommended for landlords.

As a landlord, you may have lots of questions, such as whether or not accidental damage is covered by building insurance, and whether, in some instances, a tenant could be liable for paying for any structural damage to your property.

For the former question, this is not typically included in the policy but you can add accidental damage for peace of mind. This could include things like carpet stains from spilled drinks, or dents in the wall from careless furniture rearrangements.

A tenant should inform you of any damage or issues at the property. There is usually a security deposit fund which can go some way to covering the cost of any damage, but it may not cover the entire cost. This is why building insurance is important.

What about contents insurance?

If you’re renting a property with your own furnishings, then it’s wise to have contents insurance to cover the cost of replacing these items should they be damaged or stolen. However, it’s up to your tenants to decide whether they want contents insurance to cover their own personal belongings. If something should happen to a tenant’s own TV or laptop, for example, they will be responsible for paying for a replacement or making a claim on their insurance.

I’m a tenant – do I need building insurance?

No, as a tenant you do not need building insurance – that responsibility lies with the landlord. From plumbing, sinks, baths and toilets to drains, gas pipes and electrical work, by law your landlord is responsible for maintaining and repairing the structure and exterior of the property. However, it can be worth getting contents insurance for your personal belongings.

Get advice today

If you’re a landlord or tenant and require advice on building insurance, speak to Agentis today. We can help advise and find the right policy for you. Book your free initial consultation with us today.