If your rental property is mortgaged, your lender will probably insist on adequate buildings insurance to protect their investment in your property.
There are many other reasons why landlord insurance is considered important. Your property is your investment and to leave your investment completely unprotected would seem unimaginable if it were cash.
There are many perils which could put your property at risk or destroy your investment – how would you cope if the building was completly destroyed by fire? Don’t make the mistake of thinking it will never happen to you.
Tenants that rent your property could also lose their home and possessions and you could lose all the money you paid for your property. Flood, storm, subsidence or landslip damage can sometimes happen unexpectedly and cost a fortune to put right.
If you had to completely rebuild your property, would you be able to afford it? A buildings insurance policy could pay out for a total rebuild if this were to happen.
As a landlord you are also open to public liability claims that may be brought against you. If a tenant is injures or becomes ill due to a mistake or negligence on your part, then you could be taken to court and ordered to pay for legal expenses, medical treatment or compensation totalling thousands of pounds. Adding this liabilty cover to your insurance policy could help eliminate those financial threats.
Rent is often an essential part of a landlord’s income. You can help protect your rental income by ensuring 'loss of rent' cover is included in your landlord insurance policy. This could mean your insurer will pay out when rent is not paid by a tenant or a property becomes uninhabitable and therefore the property cannot generate any rent.
Becoming a landlord should be considered carefully and all possibilities should be researched. Not insuring your property may seem like an easy way to reduce the expenditure you are making. In the long run, however, this could be costly and stressful and even risk your entire investment.
For all your landlord insurance needs, Policy Expert can help you find the right cover.
Read more in our landlord insurance guides or get a quote now.