WHAT IS LANDLORD INSURANCE


As a professional landlord, chances are you have invested a small fortune into your property portfolio to enhance its appeal to a wide variety of tenants.

For this reason, protecting your most valuable asset with landlord insurance should be at the heart of your financial planning and your number one priority when renting out your property.

Landlord insurance, otherwise known as buy to let insurance, typically has three main features:

Landlords Buildings Insurance - This safeguards the property’s structure and will cover the full cost of rebuilding your property should the worst happen and it is raised to the ground.

Always check the small print to establish which disasters you are covered against within your landlord insurance policy, for example, flood or fire damage.

Landlords Contents Insurance – This is a vital aspect of cover for any landlord and especially so for those renting out their property partly or fully furnished.

This policy covers the cost of repairing or replacing items such as furniture, carpets, televisions and any other white goods or every-day objects you leave in the property.

Landlords Liability Insurance – It’s a sad truth that personal injury claims are increasing the cost of nearly all insurance products and it is just as essential to protect yourself personally against a legal action being brought against you as a landlord too.

Personal injury claims can quickly mount up and in some cases top £100,000 per claim. This policy will protect you in the event of a tenant or visitor injuring themselves at your property and bringing a compensation claim against you.

Additional extras

In addition to all of those listed above, it is possible to include additional features to your landlord insurance policy to protect against any other peril that may befall a landlord, these include:

Rent Guarantee Insurance – As with running all enterprises, income is vital to the success of your business, so protecting your rental income should be one of your top priorities. This policy will ensure the rental payments are covered if a tenant misses a payment or does not pay at all.

Examples of this would be if a surly tenant refuses to pay or when your property stands empty between tenancies - this policy will cover the cost of your lost rental income.

Legal Expenses Cover – Unfortunately, disputes between landlords are common occurrences. If mediation fails and you are forced to take your tenant to court, this policy will cover costly legal fees. The cost of taking a tenant to court can quickly mount up, costing in-excess of £800 and that’s not including the number of month’s rental income that is lost.

Additional information: 
With such a vast array of landlord insurance policies on the market it always pays to do your homework and shop around for the best deals. Read the small print and establish exactly what is covered and what is not in your policy documents.

Remember, as with most insurance products, landlord insurance will come with an excess payment. While a higher excess may result in a cheaper premium, always make sure you can afford to pay this excess payment in the event of making a claim.



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