Insurance Choices - Landlords Insurance
published on 12/10/2017
If you won a property that you rent out to tenants then you ate landlord and the property needs to be insured with landlords insurance. Landlord’s insurance covers you for any damage to your property by the tenants living in it.
Don’t be tempted to take out normal home insurance because if you have to claim and it becomes obvious that the property is not your normal place of residence then the claim will be refused. Landlord Insurance gives you the exact type of cover you need to protect your property when you have tenants.
If you are a buy to let landlord and you own more than one property you might prefer a policy that covers all your properties at once. This saves you from having to remember and set up direct debits for each individual property because one renewal covers them all.
Standard Buildings Insurance
Building Insurance will cover you for a lot of the same things you have in your own household policy. For example, you’ll be covered for accidental damage to underground pipes that bring in your services such as water, electricity and gas. You’ll also be insurance against things like fire, flood, storm or lightning. It is usual for any outside door locks to be covered, so if your tenant loses their keys a locksmith will replace them and the door locks if necessary.
What to Look for in a Standard Policy
It’s important to have public liability insurance if you’re a landlord because it will protect you from any claims against you. If a tenant is injured on the property they rent from you, and it’s because of your negligence then they could sue for their injuries and possibly loss of earnings and out of pocket expenses. Public Liability Insurance will give you cover for any claims made against you for damages and legal costs.
Loss of Rent and Alternative Accommodation
If your property is so badly damaged, say by a fire, that your tenants can’t live in it, this cover will put them into alternative accommodation whilst your property is being repaired. You’ll also receive the rental money which would have normally been paid by your tenants if your home hadn't been damaged.
Extras that are worth considering
Malicious Damage Insurance
If your tenants deliberately damage your property then this will cover you to repair or replace any fixtures that have been damaged.
Accidental Damage Cover
If your tenant breaks a window or accidentally damages another part of the building, you’ll be covered for the repair or replacement.
This offers you protection if your tenant leaves your property with rent owing or doesn’t pay the rent whilst still living there.
You’ll be able to find Landlords building insurance by browsing the web or through a comparison website. If your property is furnished you might also want to consider contents insurance too.