If you’re new to being a landlord, you’ll have a range of different issues to get your head around – and one of these is insurance. In order to protect your rental property and your finances, it’s crucial that you have suitable cover in place, so to help you find out more, here’s your essential guide to landlord insurance.
What does it cover?
Just like regular home insurance, landlord insurance cover usually includes buildings and contents protection. However, it can also incorporate a range of extras that reflect the specific needs of landlords.
For example, additional features can include cover for none payment of rent, liability for accidents in your rental property and rehousing costs if your tenants have to move out following an insured event. You can also get legal expenses cover and protection for damage to your property caused by tenants.
Why is it important?
You’re no doubt already aware of the importance of buildings and contents cover, but specialist landlord insurance gives you added protection that can prove crucial.
For example, consider what would happen if your tenant failed to pay their rent. Particularly if you rely on this money to meet your mortgage repayments, you could find yourself in serious financial difficulties.
Including a rent guarantee in your policy ensures that you’re not left out of pocket if tenants don’t pay up. It can also cover your legal fees if you’re involved in a dispute with your tenants.
In addition, it’s important to be aware of the fact that tenants may sue you for damages if they suffer an accident or injury in your property.
For example, they may take legal action if they trip over broken tiles or receive an electric shock from faulty wiring. Without liability insurance, would you be able to cover potential court fees and compensation?
Is it a legal requirement?
If you own your rental property, you aren’t legally obliged to have landlords insurance. However, if you have a buy-to-let mortgage on the house or flat, your lender might require you to have specialist insurance in place.
You should also bear in mind that, if you have standard property cover in your own name and you need to make a claim on your rental property, your insurer may refuse to pay out.
What’s the best way to find a suitable policy?
Because there are so many different policy options, trying to find the best landlord cover can be a daunting prospect. Fortunately though, there are ways to make this process easier.
For example, you can take advantage of online comparison tools that show you the key product features for a number of different policies side by side. Viewing insurance products in this manner can be a quick and simple way to find the right financial protection.
By making sure you’re in the know when it comes to landlord cover, you can avoid potentially costly mistakes and increase your peace of mind.