Last week we discussed the rights of a landlord in gaining access to their property. This week we are looking at:
What is Landlord’s Insurance?
As a landlord, you will need a particular type of insurance for properties you rent out to tenants. This cover usually includes the same type of protection as your home insurance, such as cover for buildings and contents in the event of a range of circumstances.
However, you need to consider extra cover as a landlord, including for risks that standard home insurance doesn’t cover such as:
- Non payment of rent
- Damage to your property (by the tenant)
- Loss of earnings / rehousing costs if the tenants need to move out (after an insured event such as flood or fire)
- Liability for any accidents in the property causing injury to the tenants
Do I need specific landlord insurance?
If you are the owner of a property that you want to rent out there’s currently no legal requirement that states you must have specific insurance. However if you have a buy-to –let mortgage on the property your lender may specify that you have it.
We recommend that you consider a policy which has been designed especially for landlords. A standard house insurance policy will not cover you for the potential risks landlords take such as loss of rent and accommodation costs, should your tenants have to move out after an insured event, or cover for your liability as a landlord. You can get cover for multiple properties which can often work out cheaper if you have a portfolio.
If you use an agent to manage your property for you, they will usually be able to offer you a rent guarantee insurance policy, and should be able to advise you on what additional cover you need as well as assisting you in understanding the options available to you.
NEXT WEEK: Part 3: What’s the Housing Act 1988 and what rights does it give me?