If you own a property, buildings insurance isn’t a legal requirement, but it will usually be required by your mortgage lender. If you own a leasehold property (a common arrangement for flats) then buildings insurance may be a requirement of the lease, although it’s often arranged by the freeholder.
Whether you’re a landlord or an owner-occupier, buildings insurance isn’t compulsory under the law.
However, if you have a mortgage then insurance will usually be a requirement of your mortgage lender.
Plus, if you own a flat, then it’s likely that you have a leasehold agreement, and you may also own a share of the freehold. In these cases, your lease will usually state that it’s compulsory to cover the property with adequate buildings insurance. If necessary, speak to your conveyancing solicitor to make sure you understand the terms of your lease.
If you don’t have a mortgage and you own a freehold property, then it’s usually up to you whether you have buildings insurance. However, most property owners choose to take out buildings insurance, as it can cover the repair or rebuild costs if your property is damaged or destroyed.
If you’re a landlord, damage to your rental property could not only cost a lot to fix, but it could also affect your income if your tenants have to move out.
Landlord insurance from Simply Business includes buildings insurance to cover the costs if your property is hit by something like fire or flood, and you can also add loss of rent insurance to cover your rent if your property becomes uninhabitable following a claimable event.