Property insurance
Care Home Insurance
property cover for residential care homes and nursing homes: the building, the equipment and the income they produce
Property cover for a care or nursing home: the building, the contents and care equipment, and the income lost if damage closes beds. Fire safety and an accurate rebuild figure shape the terms.
- Residential and nursing homes
- Buildings, equipment and lost income
- Owners, landlords and operators
- FCA authorised and regulated
Quick answerCare home insurance, as property cover, protects the building and contents of a residential or nursing home, with the care equipment inside and the fee or rent income it produces. Owners and operators can add liability, and operators can add cover for the care they give. Fire safety and the rebuild figure shape the terms. Tell MyMoneyComparison.com about the home once, and specialist UK brokers can come back with quotes.
This page is about insuring the care home as a property. Claims about the care itself sit in separate liability sections, touched on in our medical malpractice insurance page. Owners of several let buildings of different kinds can look at property owners insurance.
At a glance
Care Home Property Cover, in Brief
Six things that decide how care home property insurance behaves, before any of the detail.
- The building
- Insured for its rebuild figure, not its sale value
- Care equipment
- Beds, hoists, lifts and nurse call systems
- Fire comes first
- Residents who sleep and need help to leave
- Lost income
- Fees or rent lost if damage closes beds
- Moving residents
- The extra cost of rehousing after damage
- Owner or operator
- The lease decides who insures what
The basics
What Is Care Home Insurance?
As property cover, it insures the care home building, its contents and care equipment, and the income the home produces, against events such as fire, flood, storm, escape of water and theft.
The building
The structure, extensions, lifts and fixed systems, for the cost of rebuilding.
Contents and care equipment
Beds, hoists, furniture, kitchen and laundry equipment.
Loss of income
Fees or rent lost while damage stops the home using its beds.
Increased cost of working
Extra costs to keep caring, such as moving residents elsewhere.
Equipment breakdown
Lifts, boilers and nurse call systems, where the section is added.
Liability sections
Property owners’ and public liability, with care liability for operators.
How it works
How Does Care Home Insurance Work?
You describe the building, the beds and the fire protection, set a rebuild figure, and the insurer sets terms. Changes during the year are reported so the cover keeps up.
You describe the home
The construction, age, number of beds, the type of care and who owns and who runs it.
You set a rebuild figure
For the whole building, not its value as a business. The method is in our guide to calculating a rebuild value.
The insurer sets terms
The schedule lists the sections, the limits and any fire, maintenance or security conditions.
Changes are reported during the year
Building work, an extension, a change in care type or a wing standing empty can change the cover.
What it covers
What Does Care Home Insurance Cover?
The building, contents and care equipment, with loss of income, the cost of moving residents, equipment breakdown and liability sections that can be added.
| Section | Where it sits | What to know |
|---|---|---|
| Buildings | Core for owners | Insured for the rebuild figure on the schedule |
| Contents and care equipment | Core | Beds, hoists, furniture and kitchen equipment |
| Loss of rent or income | Optional on some policies | Rent for landlords, fee income for operators |
| Increased cost of working | Optional on some policies | Extra costs such as moving residents |
| Equipment breakdown | Optional | Lifts, boilers and nurse call systems |
| Property owners’ and public liability | Core or optional | The limit is set on your schedule |
| Employers’ liability | If you employ anyone | For operators and owners with staff |
| Terrorism and legal expenses | Optional | Shown on the schedule where included |
Care liability is separate. Claims about the care given, such as a fall or a medication error, sit in liability sections for the operator, not in the property cover.
Exclusions
What Care Home Insurance Does Not Include
Gradual damage, poor maintenance, undeclared building work or changes of use, and some perils once parts of the home stand empty.
Wear, tear and gradual damage
Maintenance is the owner’s responsibility.
Unmaintained systems
Claims can be affected if required servicing was not done.
Undeclared building work
Extensions and alterations the insurer was not told about.
Empty wings
Unoccupancy conditions can apply once parts stand empty.
The care itself
Care claims need their own liability sections.
Valuables over the limit
Residents’ property above any per-resident limit.
Types
Which Care Homes Can Be Covered?
Residential and nursing homes of most sizes, and related care properties. Construction, age and fire protection matter as much as the type of care.
Residential care homes
Personal care without nursing.
Nursing homes
Registered nursing care, which can need more equipment.
Specialist dementia homes
Secure layouts and extra safety features.
Supported living properties
Shared homes for adults with support needs.
Converted period buildings
Older houses adapted for care, with rebuild costs to match.
Purpose-built homes
Modern homes, sometimes fitted with sprinklers.
Other buildings where people sleep? Hotels are covered on our hotel insurance page.
Who it is for
Who Needs Care Home Insurance
Anyone who owns or runs a care home, whether they operate it themselves, let it to an operator or lease it from a landlord.
Owner-operators
Owning the building and running the home.
Landlords of care homes
Letting the building to an operator.
Operators on a lease
Where the lease decides who insures the building.
Investors and funds
Holding care homes as property.
Groups with several homes
On one schedule where it suits.
New owners
Buying or opening a home.
Owner or operator
The Owner’s Cover vs the Operator’s Cover
Where one party owns the building and another runs the home, each insures its own interest. The lease decides who insures the building.
| Building owner | Operator | |
|---|---|---|
| The building | The owner, usually | Only if the lease says so |
| Contents and care equipment | Only the owner’s fixtures | The operator’s own |
| Lost income | Loss of rent | Loss of fee income |
| Liability | Property owners’ liability | Public, employers’ and care liability |
Letting a care home to an operator? Our commercial landlord insurance page covers the landlord’s side in more depth.
Cost
What Care Home Insurance Is Priced On
The rebuild figure, the construction and age, the number of beds, the fire protection, the location and the claims history. We do not print average premiums.
Why the building leads
The rebuild figure and construction drive the property side of the price. Converted older buildings can cost more to rebuild than purpose-built homes.
Why fire protection matters too
Detection, compartments that slow a fire, and sprinklers all feed the rate.
What the quote is rated on
The main factors
- Rebuild figureThe whole buildingBase
- Construction and agePurpose-built or convertedRate
- Fire protectionDetection, compartments, sprinklersRate
- Beds and incomeFor the loss of income sectionRate
- HistoryPast claimsAdjust
Flood exposure
Flood Re is for homes, not care homes as businesses, so flood terms are set by the insurer.
Location
Subsidence and crime history feed the rate.
Moving residents
Higher increased cost of working limits add to the price.
Fire and upkeep
The Fire and Upkeep Conditions That Decide a Care Home Claim
Care home property claims can turn on whether fire safety, maintenance and building work conditions were met. Four come up again and again.
Keep fire safety current
An up-to-date fire risk assessment, with alarms, detectors, fire doors and emergency lighting tested and serviced, answers questions an insurer will ask.
Keep systems serviced
Electrical testing, boiler and lift servicing, and water system checks, with records kept.
Declare building work first
Extensions, refurbishments and hot work such as welding change the risk. Tell the insurer before they start.
Watch empty wings
Parts of the home left empty beyond the period the policy sets can bring inspection conditions, and some perils may no longer be covered.
Quote checklist
What You Will Be Asked for a Care Home Insurance Quote
Six things shape the quote: the building, a rebuild figure, the beds and care type, fire protection, who owns and runs the home, and the claims history.
The building
Address, age, construction and any extensions.
A rebuild figure
Ideally from a professional assessment.
Beds and care type
Residential, nursing or specialist care.
Fire protection
Detection, compartments, sprinklers and the risk assessment.
Ownership
Who owns the building and who runs the home.
Claims history
Recent claims and any past refusals of cover.
Comparing
Checking Care Home Insurance Quotes Side by Side
Four areas decide whether a policy suits the home: the building, lost income, contents and equipment, and liability and extras. None of them is the price.
The building
- The rebuild figure and how shortfalls are treated
- Subsidence and flood terms
- Unoccupancy rules for empty wings
Lost income
- The indemnity period
- Whether fees or rent are insured
- Increased cost of working limits
Contents and equipment
- The contents limit
- Equipment breakdown
- Residents’ property limits
Liability and extras
- Property owners’ and public liability
- Employers’ liability
- Terrorism and legal expenses
Check the indemnity period. Rebuilding a care home and refilling its beds can take a long time. Unfamiliar terms are explained in our plain English jargon guide.
Cutting costs
How to Reduce the Cost of Care Home Insurance
The levers are strong fire protection, an accurate rebuild figure, good maintenance records, and the excess. We publish no savings figures.
Invest in fire protection
Detection, compartments and sprinklers can help the terms.
Get the rebuild figure right
Too high wastes premium; too low invites a reduced claim.
Keep servicing records
Electrical, boiler, lift and water checks, recorded.
Manage water risks
Leak detection and shut-off valves can reduce escape of water claims.
Group your homes
Several homes on one schedule can suit a group.
Choose the excess deliberately
A higher excess is a lever, worth using only at a level the business could absorb.
Glossary
Care Home Insurance Terms Explained
The words that come up most on a care home property schedule.
- Rebuild figure
- The cost of rebuilding the home, not its value as a business.
- Loss of income
- Fee income lost while damage closes beds.
- Loss of rent
- Rent a landlord loses after insured damage.
- Increased cost of working
- Extra costs to keep caring after damage.
- Indemnity period
- How long loss of income cover pays for.
- Compartmentation
- Building design that slows a fire’s spread.
- Equipment breakdown
- Cover for lifts, boilers and systems failing.
- Unoccupied
- Empty for longer than the period the policy sets.
- Average
- A reduction in a claim when the sum insured is too low.
- Property owners’ liability
- The owner’s liability for injury or damage caused by the building.
Why MyMoneyComparison.com
Why Compare Care Home Insurance with MyMoneyComparison.com?
MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces care home owners and operators to specialist brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Using us is free.
One form, one home
Describe the care home once, instead of repeating yourself to each broker.
Advice given
We are an introducer, not a broker. We do not sell policies and we do not recommend one insurer or product over another. Read our editorial policy.
Authorised and regulated
MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.
Incorporated
A UK company since 2013. FCA authorisation is separate and later; the register carries its date.
FAQs
Care Home Insurance FAQs
Answers on rebuild figures, lost income, fire safety and leases.
What is care home insurance?
As property cover, it insures a care or nursing home building, its contents and care equipment, and the income the home produces. Liability sections can be added, and operators can add cover for the care they give.
Who insures the building if an operator leases the home?
The lease decides. Some leases have the landlord insure the building and recharge the cost; others put that duty on the operator. Each party insures its own contents and income.
How do I set the rebuild figure for a care home?
For the whole building, as the cost of rebuilding it, not its value as a business. A professional assessment is the most reliable way, and the figure is worth reviewing regularly.
What happens if the home is underinsured?
The insurer can reduce a claim in proportion to the shortfall. Policies differ in how and when they apply this, and some waive it where the figure came from a professional valuation.
Does it cover the cost of moving residents after a fire or flood?
An increased cost of working section can pay extra costs to keep caring, such as moving residents to other accommodation, up to its limit. Check the limit and how long it runs.
What is loss of income cover for a care home?
It pays fee income lost while insured damage stops the home using its beds, for up to the indemnity period you choose. Landlords insure loss of rent instead.
How long should the indemnity period be?
Long enough to rebuild the home and refill its beds, which can take a long time. It is worth discussing realistic timescales with the insurer or broker.
Why do insurers focus on fire safety?
Residents sleep on the premises and some need help to leave, so fire is a major risk. Insurers ask about the fire risk assessment, detection, compartments and sprinklers.
Are lifts and boilers covered if they break down?
Breakdown is not an insured event on a standard property section. An equipment breakdown section, where added, can cover lifts, boilers and nurse call systems.
Is escape of water covered?
Sudden escape of water, such as a burst pipe, can be an insured event, with an excess. Gradual leaks and poor maintenance are commonly excluded, and policies differ.
What if part of the home is empty?
Once a wing or floor has been empty for the period the policy sets, conditions can apply, such as regular inspections, and some perils may no longer be covered. Tell the insurer.
Do I need to tell my insurer about building work?
Yes. Extensions, refurbishments and hot work change the risk, and some policies set conditions for contractors. Tell the insurer before the work starts, not after it has begun.
Does care home property insurance cover residents’ belongings?
Some policies include residents’ property up to a limit per resident. Higher-value items may need their own cover, so check the limit and tell residents and families what is covered.
Does it cover claims about the care given?
No. Claims about care, such as a fall or a medication error, sit in liability sections for the operator, separate from the property cover described on this page.
Can several care homes go on one policy?
With some insurers, yes. A care group can insure several homes on one schedule, with each building described and insured for its own rebuild figure and income.
How do I compare care home insurance quotes?
Look beyond the price to the rebuild figure, the loss of income and indemnity period, increased cost of working, equipment breakdown, the liability sections and the excess.
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About this page
This page explains UK care home property insurance: what it covers, what it leaves out, and how fire safety, upkeep and the rebuild figure shape a claim. It is general information rather than advice. Policies differ between insurers, so read your own documents and put the questions raised here to your insurer or broker.
How we approached this page
- Published UK care home and property owners policies
- UK government fire safety guidance for residential care premises
- The Flood Re eligibility criteria
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