Landlord Insurance Explained

Properly insuring your property is an absolute must for any landlord. Therefore, this month we’ll be outlining all the ins and outs you need to know about landlord insurance to help keep your investment safe, as well as your tenants.

As a landlord, the insurance requirements you will need for your property will be different to what you may be used to with regular home insurance. However, the term is quite broad, so we’ll be breaking down what landlord insurance could consist of to get you on the best footing. While it is not a legal requirement, many mortgage providers will likely make it a stipulation of your buy-to-let mortgage agreement. So without further ado, here is our comprehensive list explaining the aspects of landlord insurance you should be looking for in a good landlord insurance policy.

tenancy agreement with key

Landlord Building Insurance

Arguably one of the more important facets on our breakdown of landlord insurance, building insurance covers the property from damage. It covers damage from:

  • Subsidence
  • Malicious activity on the part of tenants
  • Falling trees
  • Storms
  • Earthquakes
  • Floods

Building insurance also covers damage to water and heating, ensuring you can rest assured that your property is safe no matter what.

In addition, building insurance will also provide cover for a rebuild of your property if the worst were come to pass. You will need, therefore, to calculate what the cost of rebuilding your property would be when you take out the cover. The rebuild cost is not the same as the market price; if you need help working out what the rebuild cost of your home is, contact your insurance provider for more information.

Loss of Rent Insurance

Usually a part of your building cover, loss of rent covers you for the income you would otherwise receive from tenants should your property become uninhabitable for a time.

Landlord Emergency Cover

When catastrophe strikes – be it in the form of a malfunctioning boiler, burst pipes or any one of a plethora of emergencies – you’ll be thankful that you took out emergency cover as part of your insurance. If you are not employing a letting agency emergency cover can be particularly useful, granting your tenants access to a range of experts that can deal with problems around the clock, or alternative accommodation should they need it.

Landlord Contents Insurance

The cost of taking out this cover will be entirely dependent on whether or not you rent your property furnished or unfurnished, as you will have to give a comprehensive list of the contents of your home and their value. However, you will not be required to insure your tenants’ possessions.

Accidental Damage Insurance

Accidents happen, and you need to be sure that your insurance provides cover for whatever damage an accident may cause. Although accidental damage cover may come as part and parcel of either building or contents insurance, other times it may not. It will cover instances of negligence or misuse, like if there was a spillage on a carpet, but should your tenant’s foot fall through the ceiling while they’re in the loft, building insurance will be the requirement.

Liability Insurance

In the event of a death or injury on your property, liability cover will provide protection for you as the owner of the property. It will also protect you from the possibility of tenants or their families suing you. Employer liability insurance may also need to be taken out if you employ a casual worker, such as a cleaner, on your property.

Rent Guarantee

Should your tenants default on rent payments, you may be entitled to compensation if you take out a rent guarantee cover. However, such payouts will often be capped or limited to a certain period. This differs from loss of rent cover because it instead looks to cover payments that your tenants default on, rather than damages to your building.

Legal Expenses Insurance

Should you need to take legal action in court, legal expenses insurance can provide cover for landlords. It helps to curtail the vast costs of legal action that many may otherwise find hard to fund. You may need to speedily take action against, for instance, tenants you are in a dispute with or against squatters, and legal expenses cover can help you immensely here.

The Insurance Store offer unbeatable landlord insurance policies from our base in the St Albans and Harpenden area. Whatever your insurance needs, we’re here to help. We pride ourselves on our ability to beat quotes given by price comparison websites and our professional team are excellent at seeking out the perfect package for your needs. So for friendly advice or a No Obligation Quote, contact our team today.