Jan
21

Insurance for Landlords

The type of landlord insurance you require will depend to some extent upon the type of tenant you are accommodating in your property.  Student lets will most certainly require a different type of cover than would a let to a professional.  Short-term (3 or 6-month lease) will require different cover from long-standing tenants who may have been with you for many years. 

In a nutshell, insurance for landlords can be as individual as you are and as a responsible property owner you will of course wish to ensure your policy has all the provisos required.  However, the majority of the expense will be used to provide cover for the building and its structures.  The policy does not need to cover the tenants’ personal possessions.

Landlord insurance can be as extensive as you require and, especially if this is your first buy-to-let experience, you should make a list of your essential requirements and make sure they are included in your policy.  Insurance providers can also offer a multiple policy if more than one property is being let.

Dec
08

Landlord Insurance – ensure your property is protected

If you are a landlord or are thinking of becoming one, then ensuring that your property is adequately covered by insurance is essential.  Such cover protects against unforeseen circumstance that might possibly cause a large financial loss. 

Price comparison sites have made sourcing landlord home insurance a far less daunting task in recent years.  They make selection and comparison of products straightforward, whilst also offering competitive prices.  The skills and knowledge of an expert insurance broker should not be overlooked in this instance either, as they are best placed to guide you through the more intricate details of these policies, therefore ensuring that you buy the one that is right for your personal circumstances.

Being prepared for every eventuality makes good business sense.  As a landlord, it is advisable to make sure that a full inventory is kept of all items in the property (particularly if let fully furnished) and the condition of such things, so they are easily identifiable and fully describable if items go missing.  Taking numerous photographs of the interior of the property is a very good idea.  Many landlords now complete a video walk-through of the property before it has been let. 

Having made these preparations beforehand it is far easier to rectify a situation if there is a dispute with a tenant over property. Landlord building and contents insurance will cover both the exterior of the building and any possessions belonging to you as landlord, that are within the property you are leasing.  It is advisable to warn tenants that this insurance does not cover their personal property and they should purchase their own policy to cover their own possessions.

If you are considering renting out your property as a buy to let investment you must consider the risks involved. Take out adequate landlord insurance before you go ahead or it might become a very expensive business venture.

Dec
02

Choosing the Correct Landlord Insurance Policy

Many landlords and tenants are unaware of the different types of insurance policy they should take out before committing to a tenancy agreement.  A common failure by landlords is to simply assume that everything will be covered within a basic household insurance package, but this is emphatically not the case.  To avoid facing liability for loss of rental income and accidental or otherwise damage to the property, be prepared and take out comprehensive landlord insurance.

As well as full buildings and contents cover, landlords should ensure that they have the following covered in a landlord insurance policy: firstly, emergency assistance cover.  This protects against events such as lost keys, electricity failures and emergency plumbing repairs, and should provide an emergency helpline as well as parts and labour cover.  However, this is not to be used as a full repair service; ongoing maintenance should also be drawn into the contract. If as a landlord you have opted for a management service via your letting agency or estate agent, this form of cover may not be necessary as it should be part of the management service, but it is always worth checking the details.  Note also that tenants should have their own contents cover for their possessions, as these will not be covered by landlord insurance.

Legal expenses are an area that should also be covered within a good landlord insurance policy.  If rent is unpaid for whatever reason, be that your tenant losing his or her job, or suffering from illness or having an accident, then the situation may have to be resolved in court.  Having a legal expense policy within your insurance is an inexpensive way of covering such legal costs, which typically can be between £800 and £1,000 per hearing. 

Finally, consider taking out rent guarantee cover as part of your landlord insurance policy.  This is invaluable if you are relying on rental payments to cover a mortgage or expenses and will guarantee some of your rental income regardless of the circumstances of the tenants.  Typically, a policy will guarantee rental income for a six to 12-month period, although additional guarantees can be taken out.  Expect to pay between three and four per cent of your annual rental income – a small price to pay for peace of mind and insurance against repossession.

Aug
01

Why you should purchase Landlord Insurance

Landlord insurance is a policy created specifically for landlords and covers them in the event of rent default, loss of rent, fire, theft and standard perils, tenant damage and damage to the building or furnishings that are owned by the landlord.

There is no law that states that a landlord must carry this type of insurance, but it can certainly assist in financially securing a landlord’s assets and protecting them in the event of issues that could potentially cause a financial hardship.  In the event that a tenant doesn’t pay their rent, or if the rent is stolen, the mortgage on the property is still due; with landlord insurance, the owner of the property is covered in such incidences, securing their investment.

Landlord insurance comes in a variety of policies that cover a wide array of damage and incidences.  Fire, water damage, and any other of the standard perils associated with homeownership can be included.  In addition to those types of cover, there is also protection for loss of rent, contents coverage up to a certain amount, and property owner liability.  This protects the landlord should the tenant fall ill or if injury arises while he/she is living in the property.  Standard residential policies are not specialised enough to protect landlords from such occurrences, making this type of insurance a necessity.

Many landlords choose to add landlord contents insurance to protect items that they own from fire, theft and o
ther risks.

The decision to purchase a rental property as an investment is a large one and should not be taken lightly.  Landlord insurance ensures that your investment is secure and protected, taking much of the worry and stress out of renting property.

Jul
09

Landlord Buildings Insurance

Building insurance is a specific type of landlord insurance that pertains to the actual structure of the property.  Premiums for building insurance are set according to the age and structural quality of the house, and factors such as location and potential risk of fire are also included in these calculations.  A new house is less likely to be damaged than an older house, as an older house is more likely to have poor wiring and problematic water pipes and plumbing systems.  A newer house will benefit from safer wiring and more recent technological advances in structural and architectural decisions.

Buildings insurance tends to cover all of the fixtures and fittings within your property, although flooring and carpets normally fall under the jurisdiction of contents insurance.  If you are looking to take a buildings-only cover (for instance, if you are letting a property unfurnished), it is important that you specify factors such as flooring in the policy or else take out some additional contents insurance.

Landlord insurance can be obtained as a policy that includes both building insurance and contents insurance in one package.  Consider all of your options, as different people will quote you in different ways.  Having separate building and contents policies might sometimes work in your favour.

You can help to protect your property from having to claim on your insurance by following some basic common-sense steps to keep your property safe, such as making sure to install deadlocks on doors and key locks on the windows.

Feb
17

Landlord Insurance Quotes

Obtaining a landlord insurance quote is quick and easy and will enable you to find a policy that suits your needs.  There are a number of websites that enable you to obtain and compare quotes in order to find the best landlord insurance.  Once you have obtained and compared quotes, you can select a landlord insurance policy that is affordable and will provide you with sufficient coverage.

In order to obtain a quote, you will be required to provide full details of the property that you are planning to rent out.  You can even obtain a quote for more than one property if you are planning to rent out several properties.  You can also state what level of coverage you require within your landlord insurance policy, such as how much public liability coverage you need.

Obtaining quotes will enable you to see how much your landlord insurance policy will cost for what you require.  Many websites will enable you to enter specific requirements and then provide you with a quote based on the information you have submitted.  This will enable you to see whether or not you can receive affordable landlord insurance for your specific requirements.

Finding a policy that suits your current needs will enable you to get the most out of landlord insurance.  With so many websites allowing you to obtain and compare policies and quotes, you are sure to find a landlord insurance policy that provides you with sufficient coverage whilst you are renting out your home.

Aug
10

Contents Insurance for Tenants a Must

In the rental market many tenants do not realise the importance of having house insurance. Whilst landlords will inevitably be responsible for the upkeep of any property and therefore have appropriate building insurance, they are unlikely to have taken out cover to protect their tenant’s belongings. For this reason it is vitally important that tenants understand that taking out contents insurance is a must.

Living as a tenant is similar to any other household arrangement when it comes to insurance needs. Whilst those renting accommodation do not need to concern themselves about financially protecting the property, it is vital that contents insurance is purchased. Thieves may still break in to properties and steal valuables, and though a landlord could take preventative steps such as installing light sensors and alarms, any financial loss will not be their responsibility. Likewise, if a fire or flood occurs, resulting in the damage and loss of personal possessions, a landlord’s building insurance will not cover items owned by the tenant.

It is therefore vital for all tenants to have appropriate insurance. Talking to a landlord about preventative measures such as installing alarms, locks and sensors can help bring monthly premiums down, and will likely also reassure any landlord that you mean to take care of their property. Meanwhile without needing to buy building insurance as well, tenants can keep costs to a minimum whilst ensuring that their belongings are financially protected.

Go back to top