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Landlords Insurance

I have a small 2 bed apartment on a complex (48) that I rent out. As part of the service charge we have always had buildings insurance cover so I only ever took out contents cover. Now we have been informed that due to a large number of claims - Water Leakage will have a £2500 excess per claim - up from £500 !

What is the cheapest way for me to cover myself against water leakage? Is it to now take out my own buildings cover as well as contents or can I separately insure to cover the £2500 excess?

I am assuming that contents cover will not cover me should I have a leak from my shower that damages the apartment below?

Thank you 
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  • anselld
    anselld Posts: 8,243
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    Look for an alternative contents insurer. 
    You are not liable for damage to the flat below unless you do something negligent so no, they would not cover that.  The flat below should have their own contents cover.
  • eddddy
    eddddy Posts: 16,155
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    I am assuming that contents cover will not cover me should I have a leak from my shower that damages the apartment below?


    • You would only be liable for damage to the apartment below if you had been negligent.
    • Or your tenant would be liable for damage  to the apartment below if they had been negligent.
    • Check your landlord's contents insurance for 3rd party liability cover - that might cover you, if you've been negligent
    • If you haven't been negligent, you're not liable for any damage to the apartment below


    BUT... perhaps the bigger risk is if there is a leak into your apartment from the apartment above - and it damages your ceiling, walls, woodwork etc.

    If you decide to make an insurance claim, you would then have to pay the £2500 excess (unless you can prove that somebody else was negligent).


  • ianpalmer2007
    ianpalmer2007 Posts: 98
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    I suppose I was more worried about their ceiling being damaged and then I have to pay £2,500 excess for the "group" buildings insurance to pay for their repairs.
  • propertyrental
    propertyrental Posts: 2,217
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    I think the OP is referring to buildings insurance provided by the freeholder/management company, and damage to the building, not contents, by leaks?

    If so, the £2500 excess would be paid by the freeholder/Manco were there a claim, and the 48 flats would each contribute £52 via the end of year management charge.
  • eddddy
    eddddy Posts: 16,155
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    edited 7 January at 5:34PM
    I suppose I was more worried about their ceiling being damaged and then I have to pay £2,500 excess for the "group" buildings insurance to pay for their repairs.

    I've explained in my reply above. To reiterate, you'd only have to pay the £2.5k if you were negligent.

    (TBH, if you were negligent, you might have to pay the full amount - not just the £2.5k.)

    But 3rd party liability cover on your landlord's contents insurance might cover you if you've been negligent. (i.e. it might pay the £2.5k or full amount of the damage.)



  • 35har1old
    35har1old Posts: 965
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    edited 7 January at 6:02PM
    I have a small 2 bed apartment on a complex (48) that I rent out. As part of the service charge we have always had buildings insurance cover so I only ever took out contents cover. Now we have been informed that due to a large number of claims - Water Leakage will have a £2500 excess per claim - up from £500 !

    What is the cheapest way for me to cover myself against water leakage? Is it to now take out my own buildings cover as well as contents or can I separately insure to cover the £2500 excess?

    I am assuming that contents cover will not cover me should I have a leak from my shower that damages the apartment below?

    Thank you 
    I  would think the insurance provided by the leaseholder is for owner occupiers not for rental purposes 
     Ordinary building insurance doesn't cover for renting
    You need proper Landlord insurance probably 3 times the price
  • eddddy
    eddddy Posts: 16,155
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    ... just to clarfy what negligence means...

    • If a pipe in your apartment unexpectedly leaks or bursts, or your washing machine unexpectedly starts leaking  - you almost certainly haven't been negligent.
    • If you leave the plug in the bath, turn on the taps, walk away and forget about it, and the bath overflows - that's probably negligent
    • If you know a pipe is leaking and do nothing about it for days/weeks - that's probably negligent
  • eddddy
    eddddy Posts: 16,155
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    edited 7 January at 6:06PM

    If so, the £2500 excess would be paid by the freeholder/Manco were there a claim, and the 48 flats would each contribute £52 via the end of year management charge.

    That's not at all a safe assumption - unless the lease explicitly says that.

    There have been a number of tribunal cases about this - and they've gone both ways. Sometimes the tribunal says the leaseholder must pay the excess, and sometimes the freeholder (from service charge funds).


    If there is nothing explicit in the lease, tribunals tend to do a forensic analysis of the precise wording of the lease, in order to come to a decision.


  • ianpalmer2007
    ianpalmer2007 Posts: 98
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    I think the OP is referring to buildings insurance provided by the freeholder/management company, and damage to the building, not contents, by leaks?

    If so, the £2500 excess would be paid by the freeholder/Manco were there a claim, and the 48 flats would each contribute £52 via the end of year management charge.
    That's interesting.

    I do have landlords insurance but the building (s) - 4 blocks - 2 floors high - of 12 flats have always been covered by the service charge of £140 per month. We were notified in writing a few weeks ago by the managing agents that due to the large number of claims they could only negotiate our buildings insurance renewal if they agreed to a £2500 excess per claim for any water damage / leak related claims. 

    It seems a heck of a lot to pay as an excess - up from £500. I am pretty certain this will be paid individually per claim as unfortunately it isn't split between 48 flats currently.
  • ianpalmer2007
    ianpalmer2007 Posts: 98
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    35har1old said:
    I have a small 2 bed apartment on a complex (48) that I rent out. As part of the service charge we have always had buildings insurance cover so I only ever took out contents cover. Now we have been informed that due to a large number of claims - Water Leakage will have a £2500 excess per claim - up from £500 !

    What is the cheapest way for me to cover myself against water leakage? Is it to now take out my own buildings cover as well as contents or can I separately insure to cover the £2500 excess?

    I am assuming that contents cover will not cover me should I have a leak from my shower that damages the apartment below?

    Thank you 
    Ordinary building insurance doesn't cover for renting
    You need proper Landlord insurance 
    I have landlords insurance for contents and liability cover.
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