A burst pipe damages the kitchen units, freestanding fridge, laminate floor and the tenant’s furniture. They were all affected by the same incident, but they may not all belong under the same section of an insurance policy.
Understanding the difference between buildings, fixtures, fittings and contents helps landlords choose appropriate cover, set realistic sums insured and describe a claim accurately.
These examples provide a starting point, but the definitions in the individual policy must always be checked.
What normally forms part of the building?
Buildings insurance is principally intended to protect the structure of the property and items that have become a permanent part of it.
This will commonly include:
- The roof, walls, ceilings and foundations
- Doors and windows
- Plasterwork and permanently fixed flooring
- Fitted kitchen units and worktops
- Baths, toilets, basins and fitted showers
- Central-heating systems and radiators
- Electrical wiring and fixed plumbing
- Built-in wardrobes and cupboards
Garages, sheds, gates, fences, paths and other external structures may also fall within the buildings section, but cover varies. Particular limits or exclusions may apply, so these structures should not be assumed to be included.
The buildings sum insured should reflect the cost of rebuilding the property, including its permanent fixtures and fittings—not its market value.
What are fixtures and fittings?
The words “fixture” and “fitting” are used differently in everyday conversation and insurance documents. Some policies combine them into one phrase without defining each word separately.
Generally, a fixture is attached sufficiently permanently to have become part of the building. A fitting may be more easily removed, although that distinction is not always decisive for insurance purposes.
A fitted kitchen cupboard is likely to form part of the building. A freestanding kitchen table is likely to be contents. Between those examples are items whose treatment can depend on their construction, installation and the policy definition.
The important question is not simply whether an item is screwed down. It is how the current policy classifies it.
What normally counts as landlord contents?
Landlord contents are generally movable items belonging to the landlord and supplied for use at the rental property.
Examples can include:
- Beds and freestanding wardrobes
- Sofas, chairs and dining tables
- Freestanding cookers, fridges and washing machines
- Curtains, blinds, rugs and televisions
- Crockery and other supplied household items
- Garden furniture and portable equipment
An “unfurnished” property can still contain landlord-owned carpets, curtains, appliances or occasional furniture. Buildings insurance should not automatically be expected to protect them.
Landlords should check whether contents cover is included, which insured events apply and whether the sum insured reflects everything supplied at the property.
Items close to the boundary
Some common rental-property items require particular attention.
Carpets: Although cut and fitted to the shape of a room, carpets are commonly treated as contents because they can be lifted and replaced. Buildings-only insurance may therefore leave them uninsured.
Laminate flooring: Flooring that is glued together and secured beneath skirting or beading may be treated as a fixture forming part of the building. Reusable click-together flooring may sometimes be treated more like contents.
Kitchen appliances: An integrated oven, hob or dishwasher may be treated as a building fixture, while a freestanding fridge or washing machine is more likely to be contents.
Wardrobes: Built-in wardrobes commonly fall under buildings cover, while freestanding wardrobes are contents.
Televisions and curtains: A television is normally contents even when mounted on a wall. Curtains and removable blinds are also usually contents, although permanent brackets, rails or shutters may be classified differently.
These are not universal rules. Two policies can treat the same item differently.
The tenant’s possessions are separate
Landlord contents insurance is not designed to insure possessions belonging to the tenant.
If a fire or escape of water damages the tenant’s furniture, clothing, electronics or other belongings, the tenant would normally need their own contents insurance. The landlord should not include tenant-owned possessions within the landlord contents sum insured.
Who may have caused the damage is a separate question. A tenant’s property does not become landlord contents because another party may be responsible for the incident.
Flats require an additional check
A leasehold flat may be covered by a block buildings policy arranged by the freeholder, management company or managing agent. That policy may protect the structure and permanent fixtures without covering the individual landlord’s movable contents.
Leaseholders should obtain the current block-policy schedule and wording. Check how fixtures inside the flat are classified, who can make a claim, which excesses apply and whether loss of rent or alternative accommodation protects the individual landlord’s interest.
The lease may allocate responsibility for repairs, but that does not necessarily establish how the insurer will classify every damaged item.
One incident can involve several sections
A single escape of water could damage the ceiling and fitted kitchen under the buildings section, the landlord’s carpet and furniture under contents, and the tenant’s possessions under the tenant’s own insurance.
Different limits, excesses and accidental-damage provisions may apply. An item being insured as contents does not guarantee that the particular cause of damage is covered.
Wear and tear, gradual deterioration, defective workmanship and routine maintenance are also commonly outside the purpose of insurance, regardless of the section in which an item would otherwise sit.
Keep evidence of what the landlord owns
A detailed inventory can help distinguish landlord property from tenant property. Keep dated photographs, receipts, appliance information and records of improvements or replacements.
After installing a new kitchen, bathroom, floor or built-in storage, review both the rebuilding cost and the contents sum insured. Substantial alterations should also be reported when required by the policy.
NetRent works with Clear Insurance Management and its experienced property-insurance team to help landlords review these details properly.
If your landlord insurance is approaching renewal, send us your existing documents. We can examine the buildings and contents protection, sums insured, conditions, excesses and premium before discussing appropriate alternatives.
Telephone: 01352 721300
Email: insurance@netrent.co.uk
The safest approach is not to rely on what an item is called in ordinary conversation. Check where the policy places it—and whether that section covers the event that could damage it.
NetRent does not provide legal advice. This article represents our general understanding of the landlord insurance and rental property market and is provided for information only.