If you rent out a property, then landlord’s insurance is something you might want to look at. It is something you have to get. A standard home insurance policy won’t cover you for all the things that can go wrong in a rented house or a commercial property.
Getting a good landlord’s insurance policy will cover you for many other things. This can include contents, liability and, if you have the right coverage, can even protect you against loss of rental payments. So what do you need to look for? Let’s take a look right away.
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You are not legally required to take out landlord’s insurance in the U.K., but if you don’t, you will face serious risk. Anything can happen in a home. A fire, earthquake, water damage, irresponsible tenants – the list goes on. And if you don’t have protection, you could face severe repercussions. Your first step should be to compare landlord insurance policies and have a look at the associated costs. You can buy various types, which we will break down into smaller chunks right now.
The most basic landlord’s insurance you can get is called buildings insurance. This type of cover is crucial, as it protects you against structural damages, plumbing issues, and a host of other things that are to do with the building. If something goes wrong with the house – let’s say there is a fire – most buildings insurance policies will cover part of the cost to repair it.
Liability insurance is when you have a claim against you. This can happen when a tenant or third party injures themselves while on your property, for example. It is important to take liability cover as you never know what might happen. Accidents occur in homes all of the time, and even the most eagle-eyed landlord can miss something they have not attended to properly, like a rogue fabric loop on an old carpet.
Loss Of Rent
Loss of rent insurance covers you for periods when you cannot rent out your property, due to it being uninhabitable. If you have a mortgage on the property, then loss of rent insurance is essential. If you don’t have it, you could face paying your mortgage for a long period while it is fixed. The risk is considerable, especially if you only have one other property. Many people in the country can barely afford to pay one mortgage, let alone two.
Cover For Malicious Or Accidental Damage
Malicious and Accidental Damage coverage is granted when you can prove that a tenant has cause damage to your property. Even if you trust your tenant implicitly, you should always have this insurance as protection. You never know what might happen, and when it does, you could be responsible for paying for the damage it causes.
OK, so that’s a wrap. That was our guide to landlord’s insurance. Does anybody want to share their thoughts? We would love to hear about them, so why not get in touch?