Property Owners Insurance from £12/month

Property owners need buildings cover at rebuild cost, property owner's liability, and loss of rent where the property is let. A gap to check is the sum insured set at market or purchase value rather than the cost to rebuild.

Cover this trade usually needs

Cover	Why it matters	Typical limit
Buildings	Fire, storm, flood, escape of water and subsidence	Full rebuild cost, not market value
Property owner's liability	Injury to tenants, visitors or contractors at the property	£2m–£5m
Loss of rent	Rent lost while a property is repaired after an insured loss	12–24 months' rent
Engineering inspection	Lifts and boilers where you are responsible	Statutory inspection plus breakdown

Key risks

• A storm or fire damages the building.
• Someone is injured on a broken path or stairway.
• Rent stops while repairs are carried out.
• Subsidence affects the structure.

Regulations and licences

• Occupiers' Liability Act 1957.
• Regulatory Reform (Fire Safety) Order 2005 for common parts and commercial premises.

What we check before quoting

• Use of the building and tenants.
• Construction, age and rebuild cost.
• Flood and subsidence history.
• Any vacant parts.

Gaps we see most often

• Sum insured at market value.
• Liability dropped on vacant property.
• Tenant changes not declared.

Limits clients and contracts usually ask for

• Property owner's liability £2m–£5m.

Key facts and sources

• The Occupiers' Liability Act 1957 sets out the duty of care occupiers owe to visitors on their premises. legislation.gov.uk — Occupiers' Liability Act 1957
• In England and Wales, the Regulatory Reform (Fire Safety) Order 2005 requires the responsible person to assess fire risks in premises within its scope. legislation.gov.uk — SI 2005/1541

Map building responsibilities before a repair becomes a claim

Assemble a responsibility map for the building identifying demised areas, shared services, retained structure and equipment maintained by occupiers. Attach leases, managing-agent appointments and recent maintenance orders. For a water leak, the route of a pipe may matter more than which tenant first reports it. Give the broker the map before a dispute arises, so the insured interest and the party authorised to instruct contractors are clear without assuming that every fixture belongs to the freeholder.

Keep a fault chronology recording the first report, access attempts, temporary measures and completed repair. Distinguish a recurring maintenance complaint from sudden damage discovered during attendance. For common-part defects, retain inspection routes and contractor findings rather than just a paid invoice. These records help explain whether later staining or injury allegations concern a new incident, an unresolved earlier defect or work carried out by an occupier over whom the owner had limited practical control.

Ask repair contractors to separate tracing the source, stopping the leak, drying, repairing resulting damage and upgrading worn components. Preserve photographs before damaged items are removed where safe to do so. When an occupier claims rent concessions or alternative accommodation, retain the relevant tenancy clauses and evidence of actual unusability. Discuss each category with the broker: maintenance, resulting damage and a negotiated commercial allowance can have different treatment and should not be rolled into one unexplained reinstatement figure.

Bring changes in repair obligations, managing agent or shared-service arrangements to the broker before signing revised documents. The linked government repairs guidance provides a housing-responsibility starting point and directs readers to differing national routes; it is not a universal commercial-lease rule. Establish the property jurisdiction and tenancy type before applying it. Then discuss the actual lease allocation and policy conditions separately, including authority for emergency work and evidence required when an occupier alleges delayed repairs increased damage.

GOV.UK: private renting repairs guidance; check the applicable national housing regime

Common questions

What is the difference between market value and rebuild cost?

Market value includes the land. Rebuild cost is what it would cost to clear the site and rebuild, which is what buildings cover should be based on.

Do I need liability if tenants have their own?

Consider cover for this exposure and check any client, lease or professional requirements; it is not automatically a legal requirement in every case. A tenant’s policy does not necessarily insure your liability as owner.

Is subsidence covered?

Usually, with a higher excess. Previous subsidence must be declared.