If you’re a landlord and you’re currently renting out one or more unfurnished properties, there are certain things that you should be aware of. Just because the house doesn't contain any of your own furniture or appliances doesn't mean that you should avoid insuring your property.
As a landlord, you still may be required, under the conditions of your mortgage, to insure your building and it’s absolutely crucial if you want to protect your investment. There are many instances where you may need to make a claim against your insurance policy.
Think about how you would manage if your property was damaged or destroyed by fire, storm or flood damage. It could be very costly if you’re unable to recoup the money spent on repairs. Could you afford the mortgage repayments if the property is empty while repairs are being carried out?
Is your property in an area known for subsidence, flooding or land slip? If so, then you may need to seek out specialist cover from a provider who understands the specific needs of your property. As a landlord, you'll have varied liabilities that you have to deal with and you'll want to make sure you’re fully covered.
What would you do if tenants damaged your property or moved out and left it uninhabitable? Many insurance policies can also provide cover for the costs associated with bringing your property back to a clean, liveable condition as well as compensating you for any lost revenue in terms of rent while repairs are being carried out.
Importantly, make sure that you’re properly covered for the full cost of rebuilding your property if it is totally destroyed. You’ll find the rebuild value on your deeds or a recent valuation if you have one and you’ll need this figure when you compare landlord insurance quotes with Policy Expert.
There are many advantages to renting out an unfurnished property. Because you have not provided the tenant with furniture, appliances or accessories you are therefore not responsible for the contents and belongings that tenants decide to bring when they move in.
You won’t have to replace the items if they are damaged or destroyed and you won’t have to make sure that items in the property adhere to fire regulations. However, it’s advisable to make sure that your tenants have adequate insurance cover in place for their own possessions and also in case of accidental damage to the structure of your building.
In the longer term, many items of furniture, for example settees or beds can suffer from general wear and tear. If they belong to you then you will have to replace them. Renting out an unfurnished property could save you pounds on your annual premium as it eliminates the need for a combined buildings and contents policy.
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