Landlord insurance protects landlords more than home insurance does. That’s because home insurance isn’t designed to cover home owners against rental activity.
Do you have to have landlord insurance by law?
Landlord insurance is not a legal requirement for landlords, but most mortgage providers do insist upon it so you will have to check with them. If your mortgage provider isn’t made aware of the fact that you are renting the property, you may be in breach of your mortgage contract. Bear in mind that many home insurance policies won’t even pay out if your property is being used to generate income. Either way, landlord insurance is a good idea regardless and will protect your most valuable asset.
What does landlord insurance cover that home insurance doesn’t?
Landlord insurance will cover you for most of the things that a standard home insurance policy will cover you for. Things such as damage to the property, fire, flooding and theft. But a conventional home insurance policy will not cover many of the situations that may arise from renting the property. With landlord insurance however, you can be covered in the unfortunate event that your tenant suffers an injury caused by an issue with the property, such as a structural collapse or electrical fault. Landlord insurance will also cover any legal fees that may arise from disputes with your tenant. It will also protect your rental income in the case of damage to the property.
Like most landlords, you probably depend on your rental income each month. Rent guarantee insurance ensures that, if things go wrong, you won’t go broke. Maybe your tenant lost their job and are in arrears with their rent payments while they are searching for a new one. Home insurance isn’t going to help you with risks like this.
You can also be protected against accidental damage or malicious damage caused by your tenants. If you are renting the property furnished, you can also purchase contents insurance for landlords which will protect your furniture and other home furnishings such as curtains, carpets and even kitchen appliances. Your tenant’s possessions will not be covered by your contents insurance and they will have to purchase their own policy.
When you don’t live in your property and are trusting your biggest asset in the hands of a complete stranger, no matter how careful you were in your tenant selection and how lovely your tenants are, there is still a huge risk. Renting property is a business, even if it doesn’t feel much like one. Getting a suitable landlord insurance policy tailored specifically to your needs, instead of leaving it as a conventional home one, will cover many risks that would otherwise leave you vulnerable to any potentially unscrupulous tenants.
Get a quote on your Landlord Insurance with Ashburnham from as little as £85 p/a!
Call 0800 169137