If you’re a landlord, or you’re intending to purchase property to rent out, you’ll need to look into specific insurance policies that are tailored towards protecting both your investment and your liabilities.
Insuring your own home is not the same as insuring a property that is going to be rented out to tenants. Many insurance companies and underwriters specialise in offering policies that aim to protect landlords and tenants and can make sure that you do not end up out of pocket.
Buildings insurance is usually insisted on if the property you’re intending to rent out is mortgaged. However, it is also crucial to have adequate buildings insurance even if you own the property outright.
This means that if any repairs are needed due to flooding, if structural work is required, or damage to the building occurs through no fault of yours or your tenants then you may be able to make a claim, depending on your policy details.
If your property is furnished, you’ll need to make sure that the contents and the building itself are fully protected. For example, you may have installed sofas, tables, beds and kitchen appliances in the furnished property and they need to be covered in case of theft, damage or destruction.
Tenants may not look after your furniture and contents in the same way they would their own possessions, and of course, accidents can happen. Taking out a policy that covers both the buildings and contents of your rented property could save you a considerable amount of money if damage occurs during the time your property is occupied by tenants.
Shop around - some policies offer added extras such as cover for replacement locks and keys and extended accidental damage cover. They can also provide cover for the worst case scenario, where a property becomes uninhabitable after tenants have left.
This would mean that you may be able to claim to have the property repaired but you may also be able to claim for loss of rent during the time the repairs were being carried out.
For all of your landlord insurance needs, let Policy Expert help you find a competitive quote now.