A Guide to Landlord Insurance

Landlords rely on the revenue from their let properties to make a living, to protect their investment adequately landlord insurance is recommended. Traditional home insurance doesn’t provide cover for landlords who earn an income from property however buying landlord insurance or as it is otherwise known, buy-to-let insurance, can help to protect revenue. The good thing for landlords is that insurance is available for a single property owner to people who have large property portfolios.

What is covered?

The core protection in most landlord policies is building insurance, this provides cover against damage to any properties you let out to tenants, for instance a fire in the building which may force them to move out temporarily so the repair work can begin. Public liability landlord insurance will protect you and your property against claims made due to damage to a third party, person or object for example, if a tile on your roof was to fall and hit a passer-by they could take you to court for an act of negligence. Landlords can also get cover for the value of property against loss of earnings in other words rent, due to damage, in many cases as much as 30%.

Additional insurance

If you are a landlord who lets out furnished properties then why not purchase contents insurance online from reputable brokers? This will protect against damage to any of your furnishings such as a sofa, carpets, beds and white goods. It’s worth noting however that contents insurance won’t provide cover for your tenant’s personal possessions. You will have to advise them to buy their own separate policy for this. You could also opt to purchase accident cover providing you with additional protection, if your tenants were to have a party and they damaged your property or its contents, you would be protected. For those landlords who have a portfolio of properties, hiring staff to maintain and run them, then employer’s liability insurance is advisable. This provides cover against compensation claims made by an employee or former employees who may have been injured while working for you.

What can affect premiums?

There are various ways in which landlord insurance brokers assess the risk of your property which in turn can affect your premiums, for instance:-

  • The location of your property (postcode)
  • The type of tenants
  • The age of the property
  • Claims history

 

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