If you’re a landlord, the right insurance cover can offer you peace of mind, in case the worst happens – from fire or flood and malicious damage to a tenant who won’t pay their rent or decides to sue you.
Having landlord insurance isn’t a legal requirement, but a standard home insurance policy won’t cover you if you are renting out property. You may also find it difficult to get a buy-to-let mortgage without the correct insurance policy. Read on for our landlords’ guide to the different types of landlord insurance you might want to consider.
Landlord insurance protects landlords from risks associated with their rental property. Alongside the usual buildings and contents insurance, it can include property owners’ liability insurance, as well as cover for loss of rent and other issues caused by tenants.
As with a domestic policy, landlord buildings insurance covers the cost of repairing or rebuilding your property if the structure is damaged or destroyed. The amount of buildings insurance you need will be based on an estimate of the cost of rebuilding your rental property from scratch, including labour and materials.
If you rent out your property as furnished, you will need contents cover to protect the furniture, appliances, carpets and any other possessions against theft and damage. You are not required to insure your tenants’ possessions – that is their responsibility.
Insure your contents for the amount of money it would cost to replace all the items you have provided in your rental property.
This type of public liability insurance can usually be added to your policy. It offers cover if your tenant tries to sue you for an accident on the premises – if they are injured by faulty wiring or trip over a broken tile, for example. Your tenant could also claim compensation if their personal possessions are damaged at the property. Damages claims can be costly, so landlords’ liability insurance offers useful protection.
You may wish to take out insurance to cover your rental income for a period of time, if your tenant fails to pay their rent.
Vacant property insurance policies are also available to cover you, if you can’t find a tenant or your property becomes uninhabitable for a certain period.
You can take out cover for any legal expenses you might incur if you take your tenant to court or are involved in a dispute.
Home emergency policies protect you and your tenants against everything from boiler breakdown to blocked drains, rodent infestations and electrical issues, depending on the cover you choose. Policies usually give you 24-hour access to qualified engineers. Emergency cover is most useful if you don’t employ a managing agent with tradespeople of their own.
If your tenants’ keys are lost or stolen, key care insurance covers the cost of a locksmith plus replacement locks and new keys.
This will depend on the type of property and tenants, and the level of policy you want. As with all types of insurance, it’s important to compare quotes from different companies but don’t go by price alone. Check that each quote will offer adequate cover for your needs. You should also make sure that the insurer you choose is properly authorised and regulated by the Financial Conduct Authority.
We can also take some of the risks of being a landlord out of your hands. Get in touch with us today to find out about the services we offer and rent guarantee scheme.
Neil background is in marketing and business development and has over 20 years experience in the field. He runs Asset Grove and is involved in the marketing strategy for most of our campaigns.
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