Landlord Insurance - Helping You Have A Stress-Free Experience
Are you a landlord? Well, we understand that landlords are often under stress given that they have to welcome tenants into their prized investments. Having appropriate landlord insurance in place will help assure the desired peace of mind.
What is landlord insurance?
Landlord insurance refers to a form of insurance policy which protects the landlord from financial losses incurred by their rental property. Under landlord insurance, you will have coverage for the building and also there is an optional coverage for insuring your assets inside the rented property. Such a policy will safeguard you against typical perils like lighting, fire accidents, explosion, natural disasters, escape of oil/water, theft, subsidence & malicious damage. You will find optional coverage alongside for terrorism, alternative accommodation expenses, legal protection, liability insurance etc.
Why take to landlord insurance?
There is a wide range of benefits of taking a landlord insurance policy. Your property is undoubtedly one of your prized investments which no doubt provides a valuable source of your income- and any problem with it could mean a serious damage to your finances. The landlord insurance you take will make sure you have an adequate safeguard for your investment which will also protect your earning & livelihood in turn. We have a handy guide on the many perks of taking landlord’ insurance.
Protection for your investment
As mentioned earlier, your property is no doubt one your most treasured investments which you rent out to tenants. You never know how much they will care for your property, be it a flat or house and hence you should be careful and take precautions to find the right tenants. The landlord’ insurance policy you take will make sure that your investment is protected even when you have complete strangers staying in it.
No issue with rent
One in five landlords comes up with situations where tenants have stopped paying the agreed rent. Of course, the rental income is a big thing for any landlord and any discrepancy here could mean severe loss to him. But when you are covered by landlord insurance, you won’t have to worry much if you land up with similar situations. Such an insurance policy is designed to cover for the loss of rental income up to a set maximum limit in case your tenants break the rental contract. The policy would also cover you in case you are missing out on the rental income given repair or renovation works on your property.
Compensation for repairing damaged property
There have been cases where malicious tenants have damaged the landlord’s property leaving him to fund heavy repair bills. In case, you face a similar situation, you can relax as landlord insurance would take care of the situation. If you are under the insurance policy, you would receive monetary compensation for the repair work which ensures that your property would be back to rentable condition as fast as possible.
The good part is that most landlord insurance policies come with flexible payment solutions, so that you can easily choose according to your needs and budget. You just need to check with the insurer that this is possible.
These are just some of the benefits that will come as a result of you taking out landlord insurance on your rented property. If you have more than one property then you will find that your costs could be greatly reduced, saving you a lot of time and money when it comes to managing problems with various properties.
For all kinds of landlord this kind of insurance can bring peace of mind. When it comes to finding tenants for your property, you never know what might happen. While it is important to exercise precaution when it comes to choosing your tenant, landlord insurance means that you can be sure there will never be irreparable damage done to your property.
Types of landlord’ insurance
- Landlord buildings cover
It’s the basic coverage and a must-have for every landlord. It safeguards the bricks & mortar of the rental property – and in case the building suffers a fire or flood accident, the insurance will help you with the entire rebuilding cost. A lot of insurance providers extend unlimited coverage here.
- Insurance for landlord contents
A lot of landlords offer furnished flats or houses to their tenants and this landlord insurance policy will be handy if anything happens to your contents inside the rental property. It could provide coverage for any valuable asset you might have inside the flat such as carpets, sofas, electronic appliances, beds & other possessions if they are damaged or stolen.
Your chosen landlord insurance policy should have a “new for old” clause while replacing the damaged or stolen contents. You won’t need to provide insurance for the tenants contents - it’s completely their responsibility to provide this themselves.
- Landlord liability coverage
The landlord liability coverage would protect the landlord in case any of the tenants gets hurt in the landlord’s property. The standard coverage you can get here is around 2 million pounds. Personal injury cases have reached heights in recent times, thanks, in part, to ambulance-chasing lawyers– who are always persuading people to file for legal compensations on personal injury cases. At times, the claims can reach up till £100,000. In such situations, the landlord’ liability coverage would assure some relief for the landlord.
- Insurance for loss of rental income
In case, your rental property is accidentally destroyed or damaged to the point that you can’t rent the building out till major repairs are made- this type of insurance policy would replace your lost rent. It is particularly vital when you are under a heavy mortgage burden for your rental property & have to rely on your rental income to repay your monthly payments.
- Insurance for legal expenses
It is not uncommon for landlords to get tangled in legal disputes with their tenants for various matters and in such situations this insurance policy will cover for your legal expenses.
- Landlord’s home emergency coverage
This insurance scheme would bear the expense of any emergency repair in your building, following mishaps like a burst pipe, gas leak & in some cases even pest infestation.