LANDLORD LIABILITY INSURANCE


Bold, brash landlords who wear designer labels, drive around in flashy cars and run their property portfolio in a lax and haphazard way could be setting themselves up for a nasty fall warn buy to let experts.

Well-known in the industry for their “get rich at any cost” mentality, these flash harry landlords are the most likely to cut corners on insurance - all too often woefully under-insuring themselves in public liability and increasing their chances of a hefty compensation claim being made against them.

Buy to let experts recommend a low key approach when dealing with tenants. An honest, ethical, professional manner will keep you under the radar and protect against unscrupulous tenants and no win no fee compensation lawyers looking to bring a case against you and make money out of you.

Landlord insurance typically includes two vital pieces of cover: building insurance, protecting against damage to your property, such as, fire that forces your tenants out of the property while it is being repaired and public liability. This protects the landlord against claims made as a result of accident or injury to a third person or their belongings.

When it comes to protecting your buy to let portfolio, always ensure the following is covered in your policy:

Fire, storm and other catastrophic losses

Liability for tenant and employee injuries

Tenant or employee theft

Malicious damage and vandalism by tenants

Loss of rental income

Libel, and slander by employees against tenants

Discrimination lawsuits filed by disgruntled tenants and employees

Allegations of fraud, misrepresentation and other intentional acts by employees

Claims made that exceed insurance policy limits

Other steps you can take to avoid a liability claim being brought against you include:

Always asking the people working in your property to prove they are adequately insured. Ask all repairmen and contractors working on your rental property to provide certificates of insurance proving that they carry adequate liability coverage and workers’ compensation insurance in your property check their policy have a minimum of one million dollars in liability insurance coverage.

Have a no pet rule in your property. This negates the risk of a tenant or visitor being attacked and injured by a dangerous dog and a compensation claim being made against you. Insurers will typically also refuse to pay out for damage caused to the property by animals.

Top tips to help reduce the possibility of public liability claims include:

Maintain adequate public l liability insurance coverage on your rental property

Create a separate business to hold the title to your rental property in

Keep up to date with risk management techniques that reduce your risks and personal liability as a landlord

Carry out diligent checks on all tenant and employee applicants for criminal convictions

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