Do I need Landlord Insurance?
Landlord insurance is a definite consideration for anyone renting out their investment property.
Even with the best-intentioned tenants, everything may not go all that well throughout the tenancy.
You may have accidental flooding and failed rent payments, the right cover would provide a peace of mind.
There are many types of landlord insurance: try to find a combination of different insurances, tailored to fit your individual landlord needs.
3 Main Landlord Insurance Tips
- Landlords need insurance specifically designed for landlords – a standard home policy is highly unlikely to be sufficient
- Your insurer must be notified every time a tenancy change takes place. Otherwise, claims may be void
- Many insurers will offer discounts if you buy landlord building and contents insurance together
Landlord Building Insurance
Banks and building societies are likely to insist on buildings insurance as a condition of a mortgage, this is pretty much the norm.
Even if you own your rented property outright, buildings insurance is likely to be the most basic cover you’ll want for such a valuable asset.
Landlord Building Insurance Cover
The right landlord building insurance will cover the cost of rebuilding or repairing your property following events such as:
- Storm, floods, lightning or earthquakes
- Damage to water, drainage or heating installations
- Collision by vehicles, machinery or animals
- Falling trees or branches
- Vandalism or other malicious acts
Landlord Insurance Loss of Rent
Loss of Rent Landlord Insurance covers income lost if your property becomes uninhabitable and your tenants are forced to move out while another claim is honoured.
Landlord Contents Insurance Only
The level of contents insurance you need is largely dependent on whether you’re renting your property furnished or unfurnished. In both cases, you should still consider taking out a Landlord Contents Insurance:
- If your property is unfurnished, you’ll still need to consider cover for white goods, carpets, curtains and blinds. You should note that some building insurance policies include a level of contents insurance as standard to cover basic items such as carpets and white goods.
- If your rental property’s furnished, you’ll need to think about the cover for furniture, electrical items, pictures and personal items. It is your tenant`s responsibility to ensure their own contents.
The amount you’ll pay for landlord contents cover will depend on the location of the property and the type of tenants in it.
Accidental Damage Insurance for Landlords
Accidental damage is usually included as part of a building or contents insurance policy. It should cover damage not caused by negligence, recklessness or misuse.
Landlord Emergency Cover Insurance
Landlord emergency cover could help in the event of a crisis such as a boiler breakdown, burst pipes, lost keys and many other types of emergencies.
Some policies will cover the cost of alternative accommodation for your tenants if the problem makes the property inhabitable.
Landlord Liability Insurance
Landlord Liability Insurance could cover you in the event of the injury or death of any individuals on your property. It also protects you against tenants who may try to sue you following an accident.
You might also want to consider employer`s liability insurance, which offers protection in the event of the death or injury of any person you employ on a casual basis at your property, such as a cleaner, handyman or gardener.
A good landlord policy would include Landlord Liability Insurance.
Landlord Rent Guarantee Insurance
Landlord rent guarantee insurance is not a loss of rent insurance. It cover offers compensation for the landlord if tenants default on their rent payments. Payments are capped at a certain level and for an agreed period.
Legal Expenses Insurance
Legal expenses insurance is designed to cover the costs incurred by landlords if they have to take legal action in court. This will help to deal with issues such as disputes with tenants, evicting squatters, repossessing property and defence against any criminal action.
This type of policy can also cover the costs of recovering outstanding rent owed by tenants.
Unoccupied Property Insurance
Most insurance providers regard a property as being unoccupied if no-one has lived there for 30 consecutive days, at which point standard insurance becomes invalid.
An empty property is more of an insurance risk due to burglary, vandalism and weather-related damage.
If your property is going to be empty for over 30 days, it is best to arrange a specialist unoccupied property insurance policy to make sure your property is still adequately covered.
Please contact Pelin Martin to book a 30-minute free property consultation on