It is important to ensure you have a suitable landlord insurance policy to cover your property in the event of accidents, loss or damage to your building or its contents. A property that is rented out is an investment and needs to be protected like any other form of investment.
Do you rent out a room in your main home and if so, do you need shared house insurance? If you’re a landlord and your home is for personal residential use only, you don’t usually need a separate landlord insurance policy for your own home – a standard buildings and contents policy is normally sufficient.
Some insurance companies offer a service where you can take out multiple policies covering two or more properties. It may be possible to find an insurer that will cover you as a landlord and well as a private homeowner.
There are often several differences between a personal home insurance policy and a landlord’s insurance policy and it’s important that you always check restrictions and limitations with your provider before you sign up.
If you earn an income from a property, chances are it is not covered under a normal home insurance policy. You need to make sure that you have adequate cover for the property that is being rented out – check the small print and don’t leave it until you have to claim to find out you’re not fully covered.
It is not a legal requirement to have landlord insurance but it is strongly advisable for a number of reasons. Firstly, whilst some tenants may be careful and respectful, others may not treat your property in the way you might. They may intentionally or unintentionally damage your property or its contents.
Secondly, wear and tear naturally occurs to residential homes and items may need to be replaced on a frequent basis. Thirdly, the financial consequences of damage or loss to your property could severely affect the performance of your investment.
The main difference between your own home insurance and residential landlord insurance is the added legal liability insurance. This helps to protect the landlord against any claims made for example, if an electrical fault causes damage to the property or a person residing in the property.
Legal liability insurance can protect and cover against any claim made where damage to the property needs repairing or compensation needs paying out to an injured person.
If you need more help with landlord insurance, call us now or read more in our landlord insurance guides.