Landlord’s Insurance – Important Facts You Should Know
When you turn to be a landlord from an ordinary homeowner, your standard home insurance may not be sufficient and here landlord’s insurance steps in. Landlord’s insurance typically covers the most common risks that come with renting out a property.
Also called buy-to-let insurance, it usually includes buildings insurance to cover against mishaps like flood, fire and subsidence. And if you will be renting out a furnished property, considering contents insurance is a good idea since it can protect everything from your TV to furniture you will provide to your tenants.
While inviting quotes for your landlord’s insurance, you might add the following add-ons to your policy:
- Accidental damage cover for the building and/or its contents
- Cost of repairing damage caused by a burst pipe, gas leak or pest infestation
- Compensation claim because of tenant injury
- Legal cover to regain lost rentArtisticOperations (CC0), Pixabay
ArtisticOperations (CC0), Pixabay
- Loss of income cover if your property gets damaged and your tenants are compelled to move out
- Loss of rent if the property is left uninhabitable
Remember that if you have multiple properties, you can typically insure them under a single policy.
Although landlord’s insurance provides coverage against risks posed by renting out a property, they vary in their coverage and so, it’s essential to check the small print.
Do You Need Landlord’s Insurance?
Though landlord’s insurance is not legally required, standard buildings and contents policies may not provide you adequate level of cover. This might mean that your provider refuses to pay out if you have to make a claim.
If there is a buy-to-let mortgage for your property, some lenders may even require you to have at least landlord’s building insurance.
Hence, it’s important to make sure that the policy you are considering provides you all the required protection instead of finding only the cheapest deal.
What do You Need in Order to Get the Quote?
While getting a landlord’s insurance quote, it’s a good idea to have the following details at hand:
- The build date of your property
- The rebuild cost of your house
- Types of locks and alarms fitted
- The total price of your personal belongings
- Details and cost of any claims made by you in the last five years
- Types of tenants you have in your property and duration of the agreement
Remember to compare policies by benefits too in addition to prices. Taking due care will let you get your hands on the best landlord’s insurance policy.
