If you are already a landlord or are planning to become one in the near future, protecting your investment is crucial. The property you are renting out could be the source of your livelihood and income and when things go wrong, it can be devastating to your finances. Just like home insurance, landlord insurance will provide you with financial support in case of accidents and damage, but what exactly is Landlord’s Insurance, and what does it cover? Is it the same as home insurance, or is it something completely different? We’ve put together a guide to help answer those questions, below.
What Is Landlord Insurance?
Landlord’s insurance is exactly what the name suggests – insurance designed for Landlords or, more specifically, their properties. When renting out your property to tenants who most of the time you don’t know very well, it can be nervewracking. You have people that are effectively strangers living in a building that belongs to you, and you may even be relying on their rent as your income. Landlord’s insurance financially protects against several potential problems, including buildings cover, contents insurance, loss of rent cover, and more. These protections ensure you aren’t left out of pocket and can cover any rebuild or repair costs, as well as any loss of earnings, legal fees, and more.
What Does Landlord Insurance Cover?
Insurance policies designed for landlords are built in a way that protects both the property, and the Landlord’s income. This means that most insurance policies will be all-encompassing and cover most of the things you’ll need while housing tenants. A good policy will typically include:
- Buildings cover – This covers the costs of rebuilding, repairing, and reinstatement of your property in the case of accidents or damage that are insurable. In other words, you can claim for any damage caused by fire, storms, escape of water, subsidences, malicious damage, and more. You can check what will be included with your insurer before confirming your policy. Malicious damage can also cover both third-party damage (i.e. break-ins, accidents with cars, etc), and damage caused by the tenants.
- Contents Cover – Contents insurance for your rental property will cover any costs of repairing or replacing furnishings in the property that belongs to the landlord in the case of damage or theft. This is particularly important for those offering fully or partially furnished properties.
- Public Liability – As the owner of a building, you are responsible for any illness or injury to members of the public or someone on your premises. This includes covering the cost of legal costs and compensation.
- Loss of Rent – Loss of rent cover will cover any lost income in cases where the home may not be inhabitable for your tenant. If the building is going through repairs or rebuilding, loss of rent will cover lost rent while your tenants are staying elsewhere temporarily.
- Rent Guarantee – Rent guarantee will cover loss of rent in the case where a tenant cannot pay, such as due to a loss of a job or other circumstances, or where they are in arrears.
Does Landlord’s Insurance Cover All Tenants?
Most Landlord’s Insurance policies will cover a wide range of tenants without any additional cover required, however, you will likely need to state the intended occupancy as it can affect the cover provided. We can help you find Landlord’s Insurance policies that cover a wide range of tenants, including:
- Students
- Professionals/Working
- Housing Association
- Council
- DSS
- Asylum Seekers
- Retirees
- Friends/Family Members
- Company Employees
Good Landlord’s Insurance can also cover the following tenancy agreements:
- Standard Let
- House in Multiple Occupation (HMO)
- Commercial Let
- Residential Let
- Mixed Use
- Resident Landlord
- Bedsits
- Empty Property
Do I Need Landlord Insurance?
While landlord insurance isn’t a legal requirement, home insurance doesn’t cover rental agreements and you, therefore, need additional coverage to protect you and your tenants. Mortgaged properties that you are buying to let will also usually need Landlord’s insurance, so it’s important to check any agreements you have, or are going to make.
With the protection that Landlord’s Insurance offers, it’s a no-brainer for those looking to rent out to tenants. It can offer you the peace of mind that you are protected financially in the case of accidental and malicious damage by tenants or third parties, as well as ensure that you don’t lose out on income if at any point you experience a loss of rent. As a Landlord, you have a responsibility to protect and maintain your property, and Landlord’s insurance can help you do just that.
For more information about any of our Landlord’s policies and how they can help you not only rent out your property but protect and maintain it effectively, we are on hand to help. Simply get in touch with Ashburnham Insurance on FREEPHONE 0800 1696137.