It is not a legal requirement for landlords to have insurance for their properties, but mortgage lenders will insist on having an adequate policy in place to protect the security they are lending on.
Both landlord insurance and home insurance policies are similar in the fact they both will cover for fire, flooding, theft and damage to the property. However, a regular home insurance policy will not cover for many situations which may arise from renting a property.
A good landlord insurance policy may cover for Buildings, Contents, Public Liability, Loss of Rent and extras such as Rent Arrears, Emergency Assistance and Legal Expenses.
If you are furnishing your rental property you can purchase landlord content cover to protect your furnishings and kitchen appliances. Tenant’s belongings will not be covered under this and it is advisable they purchase their own standalone tenants content policy.
Landlord insurance will also cover for liability in events such as the tenant suffering an injury caused by an issue with the property like a loose carpet causing the tenants to trip and fall.
Landlords often mistake loss of rent with rent arrears insurance. Loss of rent (and alternative accommodation) is where the policy will pay should the inevitable happen like a fire, flood or even an earthquake! But not if the tenant decides to disappear overnight without giving any notice. Most landlord policies will include loss of rent cover typically at a certain percentage of the building sum insured.
Rent arrears is not usually offered to all type of tenants as students, asylum seekers and tenants on benefits are usually deemed as being riskier than working tenants. Rent arrear cover will typically pay up to 6 months rent, up to a given amount and whilst the tenant still occupies the property.
Home emergency is an important option to consider as it offers crucial 24-hour assistance all your round in the event the let property suffers an incident requiring immediate attention. This could include emergencies like failure of heating, plumbing and drainage, lost keys and electrical failures among others. It takes one call in the event and the insurer will appoint a suitable qualified engineer to the property to resolve or fix the issue and any work will be only undertaken up to the given claim limits.
It is often misunderstood that if you purchase legal cover on your residential home it will cover the rented property too, however this is not usually the case. Landlords legal expense insurance provides legal protection and assistance in regards to potential disputes which may arise whilst you are letting your property. This could involve the pursuit or defence of civil disputes relating to your let property.
Renting a property is a business and landlords have responsibilities towards their tenants.
Obtaining a suitable landlord insurance policy tailored to own needs is important as to not leave them in vulnerable position. Making sure inspections are scheduled regularly whether renting directly or via an agent is important and this will help identify any arising issues to the property early and they will also encourage tenants to maintain upkeep of the property they are renting!
Please contact us on 0207 100 1765 to discuss your requirements and we will produce a quotation based on your needs.
With over 20 years of experience in financial services, Harish is a successful lending and insurance specialist. He commands a solid team of insurance advisors in mortgage lending, commercial lending, health insurance, life insurance etc catering to individuals, families, and business owners with several assetsJul 29 2018