Landlord insurance is a specialist policy that provides more cover than normal home insurance. Indeed, standard home insurance might be invalidated if your property is let to tenants. Additionally, if you’re taking out a buy-to-let mortgage your lender might require you to have landlord insurance in order to qualify for the loan.
What does landlord insurance cover?
In addition to cover for general risks such as fire and storm damage to the building, the best landlord insurance policies offer cover for:
• Accidental damage – if your tenants damage your property unintentionally.
• Malicious damage – if your tenants intentionally damage your property.
• Employer’s liability – if you employ people in your property who then become injured as a result of your negligence.
• Property owner’s liability – if you are deemed liable for damage or injury suffered by third parties arising from your ownership of the property.
• Unoccupied property cover – if you have no tenants for a period of time and therefore aren’t getting rental income.
• Loss of rent – if your tenants are unable to pay their rent.
Reducing the cost of landlord insurance
The cost of landlord insurance depends on a number of factors, some of which won’t be under your control. For example, your tenant’s employment status and the location of your property can affect how much you’ll pay.
Other factors that affect the cost of landlord insurance include:
• Property condition – if your property is in good repair this may reduce your likelihood of claiming, and therefore could mean you pay lower premiums.
• Security measures – increased security measures also reduce the chance you’d have to claim.
• Your claims history – if you make a high number of claims over the years, you’re
• Level of cover – taking out additional levels of cover will increase the price of the policy.
• Your claims history – if you make a high number of claims over the years, you’re likely to pay more.
SPEAK TO OUR LETTINGS CONSULTANTS ON OUR LANDLORD’S INSURANCE FOR PEACE OF MIND ON YOUR RENTAL PROPERTIES.