Landlord Insurance – Everything You Need To Know
When you own rented property, ensuring you have the right insurance to protect you should the worst happen is vital. Being a landlord can resultantly be an expensive business, especially if you don’t have the right cover in place.
So, if you’re in the market for landlord insurance but are unsure exactly what you need, we’ve put together a handy guide with our specialist knowledge, pointing you towards the best policy to meet your needs and requirements.
What is Landlord Insurance?
Landlord insurance will offer you specialist cover for rental property. It will protect you, as the landlord, from any risks associated with your rental property.
Is Landlord Insurance a Legal Requirement?
There is no legal requirement for you to have landlord insurance, but it is important to keep in mind that a normal home insurance policy would not cover you if you are renting the property out to tenants. It’s a huge risk to rent a property out to tenants without a dedicated landlord insurance policy in place.
What’s more, if you have a mortgage on the rented property, it is likely that your mortgage lender will require you to have landlord insurance before you let your property. Make sure to find this out before you start renting, because you may be breaking the terms of your mortgage.
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Why Do You Need Landlord Insurance?
Landlords insurance can help give you the peace of mind that your property is protected. This includes both when there are people living in it, and when it is vacant.
If you let a property, but only have standard home insurance, the insurance provider could refuse to pay any claims.
What Are The Types of Landlord Insurance?
There are six main types of landlord insurance cover:
Landlords’ Building Insurance
Landlords’ building insurance will cover the costs of repairing and rebuilding your rental property. This includes fire, flood and vandalism.
If you own a flat and the freeholder handles the buildings insurance, you can choose cover for fixtures and fittings instead.
Landlords’ Content Insurance
You can also add landlords’ content insurance to most policies if you want to cover furniture, appliances and decorative items.
Remember, this will only cover your possessions. Your tenants will need to take out their own insurance policy to cover anything that belongs to them.
Landlord contents insurance can pay for both repair and replacement if your contents are stolen, or damaged.
If you want to protect them from accidental damage, you’ll need to add accidental damage to your policy.
Property Owners’ Liability Insurance
Property owners’ liability insurance will protect you against any compensation claims made by a tenant or visitor for injury or damage that’s blamed on your property.
If, for example, someone tripped on a loose flooring tile and suffered an injury, your property owners’ insurance would cover legal fees and compensation payout.
Accidental Damage Insurance
Accidental damage insurance will either pay for repairs to your building or replace your contents if an accident was to happen.
Legal Expenses Insurance
Legal expenses insurance will cover legal action you need to make related to your rental property.
Tenant Default Cover
Tenant default insurance will protect your rental income if your tenants don’t pay their rent for at least two consecutive months. It can cover up to £2,500 for up to eight months.
What Will Landlord Insurance Cover?
Landlord insurance will typically offer buildings cover up to a certain amount to insure the structure of the building.
It depends on the finer details of the policy you choose, but landlord insurance policies will cover as standard:
Malicious Damage
Landlord insurance will typically cover against malicious damage by a tenant. This covers any intentional damage to the building and/or its contents.
If you believe the damage to your rented property was malicious, then you should report the incident to the police. Insurers will likely ask you for a criminal case number.
Loss of Rent
A landlord insurance policy that covers you for loss of rent will let you claim if your property becomes uninhabitable after damage from a fire or flood.
Landlords’ Liability
If, for example, your tenant was injured whilst living in your property, they could sue for damages.
Vacant Properties
Landlord insurance for vacant properties is vital if you rent student property. It will cover the property when it is left unoccupied for up to 90 days, and 120 days for student property.
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Do You Need Landlord Insurance for an Airbnb or a Short-Term Let?
If you’re planning to rent out your space for only a few weeks, you’re unlikely to need a 12-month policy.
Though with an Airbnb, having a correct landlord insurance policy can be a great idea for your peace of mind. It’ll cover any theft, damage, legal assistance and even injury to guests.
Speak To An Expert, Today.
For more information on landlord insurance, click here to visit Brunel Insurance for People’s website. They are our dedicated personal lines sister company with extensive knowledge of the property and landlord insurance markets.
To discuss the best policy for you and your property, contact one of our specialists on 01934 643 400.
