I'm A Landlord, Is It Compulsory For Me To Have Building Insurance?

Not compulsory, but any landlord who doesn't ought to consider doing something else with their money.

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Building insurance will pay for a building to be rebuilt or repaired in the case of damage (as opposed to contents insurance, which protects your possessions). It is not a legal requirement to have building insurance for a property that you are renting out, but if you have a mortgage on the property then it is likely to be a requirement that the moneylender makes on you so that their investment is secure.

If you own the property outright, then legally you can do without it but it is well worth having, as the building is your investment vehicle. If the worst happens and your property is burnt down or flooded, then you will have to pay for repairs or rebuilding out of your own pocket. The only other way of recovering those costs is to pursue a compensation claim, but that will only be an option if you can prove that the damage is the direct result of someone's actions or negligence.

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If you are foolish enough to not have buildings insurance on a valuable asset then you must be extremely wealthy and can afford to stand any loss. Bear in mind that if a tenant is injured through fire or some defect with the building you will be personally sued for damages.

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