If you are a landlord renting out a property, landlord insurance cover is essential to protect you, your property and tenants. Like most insurance policies, what is and what isn’t included varies.
Although it may not be compulsory for residential landlords in the UK to have landlord insurance, it is certainly a wise and pragmatic move to protect you and your property from mishaps. Like other insurance policies, it is important to get a policy that covers the risks.
Landlord insurance can cover…
If you offer furnished accommodation, you may choose contents cover as part of your policy. It can cover furniture and appliances against theft, fire or flood but does not cover your tenants’ belongings.
From the cost of repairing or rebuilding your property, to covering the cost of damage caused by vandalism, flood or fire, you can opt for buildings cover as part of your insurance policy.
One of the biggest concerns for a landlord is tenants falling behind in paying rent. @lettingproperty found that in 2017, 9% of tenants in the private rented sector were behind with their rent. You may be an understanding landlord but you can’t manage this shortfall forever. Landlord insurance can cover rent arrears if you opt for it.
Fixtures and fittings
It is also possible to add fixtures and fittings insurance to your landlord policy. Contents cover will cover furniture and appliances, whereas fixtures and fittings cover ensures that these are covered against fire, theft or flood.
From natural disasters such as flooding to burst pipes, water damage can seep into the fabric of a building leading to hefty repair bills. You will need to check the fine print for the detail of what the policy covers, but water damage cover, including sudden and accidental damage such as a burst pipe, can be added to your policy.
There have been changes introduced in the private rented sector in England meaning that no-fault evictions (e.g. tenants being evicted because they complain about something) are now banned. However, landlord insurance can cover the costs associated with tenant eviction when this is necessary. This is certainly worth considering as legal expenses around eviction can be significant.
It is also possible to have cover in place should a tenant seek compensation for an injury. Known as landlord liability insurance, it covers compensation claims and legal fees if you are held responsible.
Unfortunately, not every tenant looks after a property. Any damage will need to be repaired before you place it back on the rental market. Not only can these repairs be expensive, but you will also be missing out on rental income during this time too. Landlords insurance can cover tenant damage but you will need to make sure this is included in your policy.
In fact, there are many other risks that can be covered with landlord insurance. To find out more and to get the perfect fit insurance product for your property portfolio, contact our expert insurance team.
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Written by: Cambridge Web Marketing