It will have taken considerable effort to let your property. Whether you have spent years building a portfolio or have simply decided to let your property, the last thing you need is for all that hard work to go down the drain – not to mention the income stream from rent being affected by damage.
Landlord insurance at its basic level starts with buildings insurance and, in this sense, is not too dissimilar to buildings insurance for a private residence. If you want to take out a buy-to-let mortgage, you will need to have buildings insurance in place.
Buildings insurance
Buildings insurance is imperative as it covers the cost of structural damage and the cost of rebuilding your property should the worst happen. This can run into some rather scary numbers that far exceed the market value of the property. Buildings insurance typically covers damage caused by fire, smoke, burst pipes, storm damage, water, theft, and vandalism. Landlord’s buildings insurance differs from standard buildings insurance, and if it’s not in place, your insurance could be invalidated. But the good news is that the correct landlord buildings insurance policy could provide accommodation cover if your tenants can’t stay in your property due to damage. If your tenants caused malicious damage to your property, then you are covered. It’s important to check with your insurer so that you know exactly what you are covered for.
Add-ons and other important cover
Just because certain elements of landlord insurance may be classified as add-ons, they are seriously worth considering as they could save you vast sums of money and help protect your investment.
Landlord contents insurance
This could be a separate policy from your building’s policy or an add-on, and if you are letting an unfurnished property, you might not deem it essential. That said, carpets, curtains, and furniture can be costly to replace, and if you’re renting your property furnished, it’s a no-brainer! It’s worth remembering that your tenant’s furniture is not covered by your contents insurance policy.
Liability insurance
This covers you against any claims made by your tenants should they have an accident resulting in an injury on your property. Legal claims of this nature can run into millions of pounds, so it really is worth considering!
Rent guarantee insurance
Taking out this kind of cover is a very shrewd move. The circumstances of your tenants can change, and if they can’t pay the rent, then you are covered. Without it, you may struggle to pay your buy-to-let mortgage. This type of insurance, also known as rent default insurance, will also cover the cost of any legal action required if you are forced to evict tenants.
Home emergency cover
This can be very handy in the face of an unexpected failure of essentials like plumbing, heating issues, drains, blocked sewers, lost keys, electrical issues, roofing problems, and the doors and windows that keep your property secure. The costs of labour and parts are covered, so it’s a comforting feeling knowing that any unexpected bills will be taken care of if you need to make an expensive call out at any time of the day or night.
Are you a landlord looking to protect your property investment with a complete and competitively priced policy? Get in touch.