Landlord insurance – you may not have heard of it, but it’s still important. Those letting out properties need to protect their assets – whether that’s the contents of the house or the building itself. Read on to find out more how you can cover your most valuable possessions.
Landlord insurance isn’t very different from normal home insurance – except that it specifically covers landlords for issues they might face.
Specifically, it can provide either buildings or contents insurance (or a comprehensive policy). In addition, it provides for issues landlords may face with tenants.
Landlord insurance generally provides coverage for things like:
- The non-payment of rent.
- Damage done to the property (by your tenants).
- Rehousing costs if tenants need to move out (usually following an insured event).
- Liability for any accidents that occur on the property which result in injury.
Is landlord insurance compulsory?
Legally speaking, landlord insurance is not mandatory. However, those with buy-to-let mortgages may be required by their lender to take it out. If not, it’s still highly recommended. Standard home, buildings or contents insurance plans won’t cover the specific “landlord problems”. Loss of rent, cost of accommodation and liability will aren’t considered without landlord insurance.
Landlord insurance for the building
Buildings insurance is important for landlords due to the risks of letting out a property. If you have tenants and take out regular house insurance, it could invalidate the cover policy you have. That’s why it’s important to let your provider know – and get that extra cover to protect your income and material assets.
Contents insurance for landlords
With landlords’ contents insurance, you’re taking out a separate policy which covers your home’s actual contents. The building isn’t included. If you have an expensive furniture suite, you should insure it against any damages that tenants may cause (either intentionally or by accident).
When it comes to contents insurance, landlords should consider it if the property has any furniture/appliances. If you’re renting a property out where the tenants have to supply furniture themselves, it normally isn’t an issue.
Landlord insurance is a must – plain and simple. It may very well not be a legal requirement, but you are still entrusting your property to strangers. There is no telling what could happen, and as standard home insurance policy may refuse to cover you if misfortune turns out to be the deeds of others.