Letting Farm Buildings for Storage: Landlord Insurance UK
Quick answer
What insurance do you need to let farm buildings for storage?
If you let farm buildings or yards to other businesses, you need commercial property owners' insurance covering the buildings at their full rebuild value, property owners' liability for claims arising from the premises, and loss of rent if a building cannot be used after insured damage. Every tenant's trade and what they store must be declared, because the contents of a let barn, such as caravans, vehicles, timber, fuel or packaging, drive the fire risk and can affect cover for the whole farm.
Why letting buildings changes your insurance
Letting out buildings is the most common form of farm diversification: half of farms in England let buildings, earning an average of £27,900 a year from it, according to Defra's Farm Accounts in England for 2024/25. Since May 2024, Class R permitted development allows up to 1,000 m² of agricultural buildings to change to storage and distribution, light industrial and other commercial uses.
Once a building is let, it is no longer under your day-to-day control. The tenant's activities, what they keep in the building and how well they manage fire risk all affect your insurance. Insurers will want to know about each tenant, and a single high-risk tenant can change the terms for the whole farm.
What cover you need as landlord
| Cover | What it protects |
|---|---|
| Buildings | Rebuilding let barns and units after fire, storm, flood or impact |
| Property owners' liability | Claims from tenants, their visitors and the public arising from the premises |
| Loss of rent | Rent lost while a building cannot be occupied after insured damage |
| Landlord's contents | Fixtures and equipment you provide, such as racking or security systems |
| Terrorism | Sometimes required by lenders or larger tenants |
Tenants and what they store
Underwriters group tenants by fire risk. Dry storage of household goods or packaged products is usually straightforward. Higher-risk uses include caravan and boat storage (fuel, gas bottles and batteries), vehicle storage, timber and joinery, waste or recycling, hay and straw stored for others, and anything involving lithium batteries. Some will only be accepted with conditions, such as separation distances, sprinklers or restrictions on what can be kept.
Keep a simple register of every tenant, their trade, what they store and when they moved in, and send it to your broker at each renewal or when a tenant changes.
Leases, licences and recharging
Most farm lettings are on licences or short leases. The agreement should say who insures the building, usually the landlord, with the premium recharged to the tenant, and require tenants to insure their own contents, stock and liability. Ask tenants for a copy of their public liability certificate and make it a condition of the letting that they tell you before changing what they store or do.
Vacant buildings between tenants
Empty buildings attract arson, theft and squatting, and most policies restrict cover once a building has been unoccupied for 30 to 60 days. Tell your insurer when a building becomes vacant, keep it secure, remove combustible waste and inspect it regularly. If buildings are likely to stay empty for a while, a specialist unoccupied property policy may be needed.
Frequently asked questions
Who insures a farm building let to a tenant?
Usually the landlord insures the building and recharges the premium, while the tenant insures their own contents, stock and liability. Check the lease or licence, as it should say who is responsible.
Do I need to tell my insurer what my tenants store?
Yes. What is stored in a building has a major effect on the fire risk. Failing to declare a high-risk tenant could affect a claim for the whole site.
Is caravan storage on a farm insurable?
Yes, but insurers will ask about numbers, spacing, security, gas bottle and battery policies and whether caravans are stored inside buildings or in the open.
Does my farm policy cover buildings I let out?
Some farm policies will include let buildings if they are declared with the tenant's trade. Larger or higher-risk lettings are often better placed with a commercial property owners' insurer.
Related guides
- Farm diversification insurance
- Barn conversion insurance
- Commercial landlord insurance when a tenant goes into administration
- Unoccupied property insurance
- Farm shop and café insurance
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