Cheap Landlord Buildings Insurance

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Buildings Insurance Cover

Although our buildings insurance is cheap, the cover provided is not compromised.

The policy insures the buildings against the following:- (comments in red are not in the policy but are to help explain)

 

Loss or Damage to the Building caused by: What the insurance does not cover:
Fire, Smoke, Explosion, Lightning and Earthquake Smoke damage by any gradually operating cause (e.g. from a coal fire over a period of time)
Storm or Flood (Note that for 'Storm' there must be strong winds. Heavy rain/ snow by itself is not 'Storm'. There is no specific definition of 'flood' in the policy so normal English usage applies)
  1. The Excess detailed in your Schedule (The first £75.00, £150.00 or £250.00)
  2. Damage to gates, fences or tennis courts. (Note that damage to walls, sheds, greenhouses IS covered)
  3. Damage caused by frost, subsidence, landslip or heave. (Subsidence, landslip and heave are covered below - but a different excess  and exclusions apply)
Riot, civil commotion, strike, labour or political disturbance, malicious persons or vandals.
  1. Damage occurring if your home is left unoccupied for more than 31 days. (see below)
  2. malicious damage by any person lawfully in your home. (Landlords with the same tenant for at least two years without any malicious damage claims will have this exclusion removed.)
Subsidence or heave of the site beneath the buildings or landslip causing the buildings or part of it to collapse. (provided as standard - some other landlord insurance policies exclude this unless specifically purchased)
  1. The excess detailed in your schedule (£1,000 unless changed by endorsement)
  2. Damage to terraces, patios, drives, paths, garden walls, outdoor swimming pools, fishponds, ornamental ponds and tennis courts unless the foundations beneath the external walls of your home are damaged at the same time (restricts damage to the main structures)
  3. Damage caused by the bedding down of new structures or settlement of newly made up ground. (If this happens then it is the legal liability of the person who built the structures or made up the ground.)
  4. Damage to solid floor slabs or resulting from their movement unless the foundations beneath the external walls of your home are damaged at the same time. (Again this is the responsibility of the person who laid the floors)
  5. Damage caused by coastal erosion. (Other forms of erosion are OK)
  6. Damage resulting from demolition or structural repairs or alterations to the buildings. (Comes back to liability of person who did this).
  7. Faulty workmanship or design or defective materials in the building. (As is this)
Escape of water or oil from any fixed water or heating installation or domestic appliance. (Covers such things as leaking pipes or even floods from washing machines!)
  1. The excess detailed in your schedule. (£150.00 unless you selected the £250.00 excess option or the property is unoccupied and the wider cover is purchased - when it is £250.00)
  2. The repair of the part of the installation from which water or oil escapes. (The damage caused by the water/ oil escaping is covered, but repairs are your responsibility. We recommend a home emergency policy is effected to cover this eventuality.)
  3. Damage occurring if your home is left unoccupied for more than 31 days.
Freezing of domestic water and heating installations resulting in damage thereto.
  1. damage due to age, rust, corrosion, wear and tear. (This is not a maintenance contract, as a policyholder you have a responsibility to ensure the home is maintained.)
  2. Damage due to poor insulation or lagging. (Insurance covers the unexpected - poor insulation/ lagging will obviously increase the risk of water freezing.)
  3. Damage occurring if your home is left unoccupied for more than 31 days.

Note that no excess applies
Theft or attempted theft. e.g. damage to a window caused by someone breaking in.
  1. Damage if your home is left unoccupied for more than 31 days
  2. Theft by a member of your household or a lodger, tenant or paying guest.

Even if malicious damage cover by tenant is covered (see above), theft by tenant isn't.

There is no requirement for the theft to involve forcible or violent entry (unless amended by endorsement)

Note that no excess applies
Impact involving an aircraft, aerial device or anything falling from them, or a train, vehicle or animal. (e.g. a car is driven through the front wall)
  1. Damage caused by insects (e.g. woodworm larvae) or by domestic pets owned by you or anyone residing in your home.

Note that no excess applies
Breakage or collapse of satellite dishes, receiving aerials and their fittings or masts.
  1. Damage to the satellite dish, aerial, fitting or mast itself. (Note the difference - damage caused by the dish, aerial is covered. Normally best to contact the company who put up the system)

Note that no excess applies
Falling trees, branches, telegraph poles or lamp posts including the cost of removing any that cause damage to the home. Any reason why these objects fell over (unless excluded under the general or specific exclusions) is covered. If the home is damaged then the cost of removal is covered. If damage is caused to the buildings that are not part of the home e.g. an ornamental fishpond then the cost of removal is not covered.
  1. damage to tennis courts
  2. The cost of removal if buildings are not damaged at the same time
  3. damage due to tree felling, lopping or topping operations undertaken on the site of your home (The responsibility of the person doing said felling, lopping, topping.)

Note that no excess applies

The following extensions also apply (No excess unless stated)
Underground Pipes and Cables

Accidental damage to underground pipes and cables supplying the building, but this cover is limited to £1,000 in respect of all work necessary to clear a blocked underground pipe. Also see 'trace and access' below
  1. Damage for which you are not legally responsible (e.g. that of the water board)
  2. Wear, tear and gradual deterioration (This is a standard exclusion, in here for emphasis.)
  3. Blockage by anything deliberately discharged into a drain by you or with your permission. (Don't throw fat down the sink or into the drains!)
Glass, Ceramic Hobs and Sanitary Ware

Accidental breakage of fixed glass, solar panels, ceramic hobs or tops in fixed units and sanitary ware. (Note 'solar panels'!)
  1. Damage occurring if your home is left unoccupied for more than 31 days.
  2. Damage to fixed glass in furniture
Alternative Accommodation or Loss of Rent

The cost of comparable alternative accommodation or loss of rent receivable for the period that the buildings are uninhabitable in consequence of damage due to an insured event (above this list of extensions)

Some insurers make this a (chargeable) optional extra. Please note that this is NOT a rent guarantee policy - which may be purchased as part of the Legal Expenses policy we offer or elsewhere.
  1. This cover shall not apply to damage to either property if there is any other insurance in force covering such damage.
Emergency Access

Damage to your home caused by forced access to attend:

  1. a medical emergency
  2. an event that would result in damage to your home by an insured event (above this list of extensions)

Being an ethical company SAGIC feel it would be improper to penalise their policyholders if they need emergency medical treatment.

Also - since attending the home to reduce or stop damage that they would have to pay out - they will pay for the damage caused to prevent said damage
Sale of your home
  1. When you have exchanged contracts to sell your home, the buyer will have benefit of cover (under Section 1) until completion of the sale.
  2. if we have agreed to insure your new home (Section 1) cover shall commence from the exchange of contracts
  1. This cover shall not apply to damage to either property if there is any other insurance in force covering such damage.

Once contracts have been exchanged the purchaser is committed to buy the property at the agreed price - even if it should become a smoking ruin the next day! This creates an insurable interest so this policy is extended to cover the insurable interest of the buyer of your home (until they arrange cover elsewhere or completion) and your insurable interest in your new home.
Locks and Keys

the cost of replacement locks and keys to external doors, alarm systems or a domestic safe in your home required due to the keys being accidentally lost or stolen. This extension is subject to a maximum limit of £500.00
  1. The cost of repair of the source of the damage unless the cause is covered elsewhere in the policy
  2. The excess stated in your schedule.

(This has been printed in the wrong section of the policy. SAGIC will not apply this)
Trace and Access

Where the buildings are insured and if they are damaged due to an escape of water from any fixed water or heating installation for which you are legally responsible we will pay the reasonable cost that you incur in finding the source of the damage.

The most we will pay is £5,000 but not more than £2,500 for a water leak outside the home.

 Note, again, the difference between 'buildings' and 'home'. If the escape of water just results in a soggy  garden then there is no cover, but if it damaged a drive or patio for instance then it would be (as would the damage itself). If, for example the leak was outside the home - and damaged a drive - then the insurance company would pay for the cost of digging a trench to locate the damage and for the cost of filling in the trench once the damage has been repaired, (up to £2,500) but the cost of actually repairing the pipe is not covered under this section - if caused by accidental damage then it would probably be covered under the 'Underground Pipes and Cables' extension above i.e. limit £1,000 for the repair itself.

Accidental Damage 

This ONLY applies if the additional premium (5%) is paid. The policy excess (£75, £150 or £250) applies. Note that some sections of cover shown above include accidental damage, e.g. underground pipes and cables, glass, ceramic hobs and sanitary ware. Accidental damage cover is not available for unoccupied property undergoing reneovation.
Sudden, unintentional and unexpected physical breakage or damage that can be seen.

This would not, for instance, cover breaking down a door to get into the home if the keys had been lost as that is intentional damage. 'can be seen' would include damage that has to be inspected by using a torch. 
  1. The excess stated in your schedule
  2. Any loss or damage that is excluded by the General Exclusions to this policy.
  3. Damage caused by domestic pets belonging to anyone else residing in your home, or vermin, insects, damp, mildew, rot, fungus or other gradual cause. (Note that accidental damage caused by your own pets IS covered under this section. This overrides the exclusion under the 'impact' section.)
  4. Damage occurring if your home is left unoccupied for more than 31 consecutive days.
  5. Any process of cleaning, dyeing, altering, repairing, renovation, restoring or dismantling of the apparatus. (This means that damage caused to something by these methods is excluded - but accidental damage caused to the buildings as a consequence (e.g. knocking over a can of paint) is covered.
  6. Demolition, structural alterations or structural repair to the building.
  7. Mechanical or electrical fault, breakdown or failure (Note that although accidental damage caused by these is excluded, damage caused by a resulting fire (for instance) would be covered)
  8. Faulty workmanship, defective design or the use of defective materials. (Again this is probably a liability issue if a contractor did the work - and it is only accidental damage that is excluded by this exception)

End of Buildings Section

Additional Notes

Unoccupied Property

The buildings insurance has various default exclusions of cover if the property is unoccupied for more than 31 days. If the property is unoccupied at inception then these exclusions commence at inception rather than 31 days. However there is the opportunity to extend the policy to cover these exclusions (other than property in the open).

Provided:

  • The property has 5-lever door locks and window locks in force

  • The central heating is drained or kept at a temperature of at least 12C

  • It is inspected at least once a week by a responsible adult and records kept

  • The additional premium is paid

Then

The exclusions applying for unoccupied property do NOT apply. (Call us for clarification)

What are Buildings?

Buildings are defined as:-

Your Home, including garages, sheds, greenhouses and other domestic outbuildings, and landlords' fixtures and fittings therein and thereon, paved terraces, patios, drives, paths, walls, gates and fences, sunken swimming pools, fishponds and ornamental ponds and hard tennis courts, on the site of your home.

What is 'Your Home'?

Your Home is defined as:-

The private dwelling and its outbuildings used solely for domestic purposes at the Risk Address as shown in your schedule. (Note that it is not a requirement under this policy that you live at the Risk address - hence the policy is suitable to insure unoccupied property and property let out as a landlord.)

Note that 'Buildings' covers more than 'Your Home'  as it extends to many garden features. For instance a falling tree branch may damage a fishpond (part of buildings and hence the damage is covered, but not part of Your Home, so the cost of removal isn't.)

General Exclusions

The policy does not cover the following

  • Breakdown: mechanical or electrical breakdown, fault or failure.

  • Communicable Diseases: The transmission by you or any member of your household of HIV, AIDS or any communicable disease

  • Computer Failure (date recognition)

But will cover damage caused by an insured peril even if the peril was created by one of the above. (normally counted as a consequential loss). This exclusion does not apply to any cover for liability to domestic employees.

  • Confiscation by order of any government or public body

  • Consequential loss of any kind or description incurred by you or your household

  • Deliberate, malicious or wilfull act by you or any member of your household

  • Any damage that existed before cover under the policy commenced.

  • Pollution or contamination - unless caused by a sudden and unforeseen and identifiable accident. All pollution which arises out of once incident shall be deemed to have occurred at the time such incident takes place.

  • Radioactive contamination  and confiscation

  • Reduction in value of the property following a claim settlement.

  • The cost of replacing any undamaged item or part of an item  forming part of a set (other than a pair)

  • Sonic Bangs

  • War risks - includes civil commotion, popular uprising

  • Wear and Tear

  • Terrorism

    • Liability (other than to domestic servants) incurred by you for damages, costs and expenses resulting from any act of terrorism or any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism. (This is abridged - basically it means that if you are found liable for any terrorist act - and sued for damages, or if costs are incurred stopping you from committing any act of terrorism then the policy won't protect you.)

    • Any loss or damage directly relating to terrorism involving:

      • Contamination or the threat of contamination

      • Any action involved in controlling preventing or in any way relating to contamination or threatened contamination

      • For the purpose of this exclusion contamination means the contamination, poisoning or prevention and/or limitation of the use of property or objects due to effects of any substance or process.

(If the insurers allege that damage is not covered because of this exclusion, the burdon of proving the contrary shall be upon you)

Even though Landlord Insurance is a commercial product, our insurers use a personal-lines policy as a basis of cover, thus there is no automatic exclusion of loss or damage caused by terrorism (other than the above) and there is no need to obtain cover through Pool Re. The following examples may help.

  • Terrorists blow up the synagogue opposite and the blast damages your home. Covered - under 'explosion'.

  • Terrorists use your home to prepare explosive devices - Because of the volatile nature of the chemicals the house catches fire. Not covered.

  • Terrorists are using your home. They cause such damage to the property that it collapses, injuring several passers-by. This policy will not protect you against damages being awarded due to having an unsafe property.