Your guide to landlord insurance
Landlord insurance is an extremely important thing for people in the property rental industry to have in place. Sometimes referred to as “buy-to-let insurance” for this exact reason, this form of cover is taken out as a means to protect a landlord’s property.
If you’re a landlord, you rely on constant revenues from your property to deliver your earnings, plain and simple. Traditional home insurance cannot provide the cover necessary, so by taking out landlord insurance you can help prevent any possible intermissions or disruptions to this stream of income. Available for any landlord, from the single property owner to the large professional portfolio manager, it is just common business sense that you would invest in this protection.
The main points of cover are easy enough to understand. Buildings insurance will cover damage to your property, such as that caused by fire. If tenants are forced to temporarily move out as repairs are undertaken, you will receive a level of support for this – additional products are available that cover 100% of your lost income, should alternative accommodation become necessary due to the damage.
Meanwhile, public liability insurance protects your business against claims made due to third person damage, such as masonry falling from the building and hitting someone walking past. Additional cover available includes Landlords Contents Insurance, designed to protect against damage caused by your tenant to items you have provided, like soft furnishings and light fittings.
Employer’s liability insurance is another important facet if you incorporate more business elements into your landlord role and end up hiring others. If you hire staff to maintain a portfolio of properties and run them on your behalf, it is a legal requirement to have this as this can protect you against compensation claims made by any employees injured at work.
Several things will affect your premium, should you be in a position to buy, renew or change a landlord insurance policy. There are a wide range of different factors used by insurers when assessing the risks to a property and how much premium they should charge. Major factors will include: the location of the rental property (usually judged on postcode); the type of tenants in the property; how secure it is; any past history of claims; how old the property is; and, quite importantly, the type of property it is that you rent out.
It is important that you get the best deal, so with savings of up to 60% available in the market, you should always shop around. This may seem like an obvious point to make but, in today’s market, more and more companies are willing to undercut their rivals to get you on board. Do not pay for cover you do not need either. While it is important to ensure you get everything you require from your insurance, check that this is not a one-size-fits-all policy designed to cater for those with far more requirements. It is not hard to find a great deal, as those who compare deals with Simple Landlords Insurance will be well aware of; the trick is to understand what it covers and what levels of protection you need.
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