A Comprehensive Guide To Landlord Insurance

Insurance is not a very exciting topic, but if landlords fail to protect their corporate entities or properties, they are putting their financial well being at risk. Landlords need a specialised type of insurance to protect their rental properties. If you’re new in the rental property business, you may have a number of questions in your mind about landlord insurance. To help you out, we gathered all the information in this short guide.

What Is Landlord Insurance?

Landlord insurance is home insurance designed to protect property owners from the risks and financial losses associated with letting out a property. It provides a cover from theft and damage caused by fire, natural disasters, water leakage, burst pipes and subsidence. Depending on your type of insurance policy, you can select different types of covers, including:

• Building insurance
• Content insurance
• Legal liability cover
• Rent guarantee insurance
• Malicious damage by tenants
• Alternative accommodation
• Unoccupied property cover

What Does Landlord Insurance Cover?

The type of cover you add to your insurance policy depends on the type of property you’re renting and the level of security you require. The more types of cover you add, the more will be your landlord insurance cost. That is why it is important to understand your requirements and options.

Building Insurance

It provides protection to building structures, fittings and fixtures and covers the cost of repair in case of any damage.

Content Insurance

If you are renting out a furnished property, content insurance will cover your contents, such as furniture or appliances. However, it does not protect tenants’ contents, so you should ask your tenants to purchase tenant insurance UK to protect their belongings.

Legal Liability

It covers you if your tenant or guest gets injured due to any fault in your property. In addition, it helps you by paying off medical and legal expenses.

Rent Guarantee Insurance

If your tenants fail to pay rent, your landlord insurance policy will compensate for your monthly income for a specific time period.

Accidental Damage Cover

It covers you in case of unexpected mishaps such as spilt wine on the rug or burst water pipe.

How To Get A Landlord Insurance Quote?

To get a landlord insurance quote, you have to provide some necessary information to your insurance provider, including:

• Information about your rental property, whether it is a residential or commercial property, its age, location and material used in construction.

• The background, identity checks and employment status of your tenants.

• Type of cover you need for your property.

• Your claim history shows the number of claims you’ve made during the time you owned property.

• Your payment method whether you want to pay insurance premiums monthly or annually.

After assessing all your information, insurance providers offer a quote as per your requirements.

The landlord insurance cost varies depending on your property location, type of property and level of cover you need. To find cheap landlord insurance, you should shop around, invest in the security of your property, choose the right cover, pay annually and compare quotes.