Having appropriate landlord insurance is essential (it may even be obligatory in many instances if you have a mortgage on the property) if you’re obtaining rental income from a property you own.
To be absolutely sure what a given landlord insurance policy actually covers, you should read the policy and communicate in detail with an experienced provider of landlord insurance. That’s because, just as is the case with any other form of insurance, it’s perfectly possible that one policy’s cover will differ significantly from another’s.
You’ll want to know exactly what’s included and equally not included, before making your final purchasing decision.
However, as a quick guide, a landlord policy might provide you with cover in the following areas.
This is more of a loose concept but it’s mentioned here to illustrate an important point.
Many of the things covered by a typical landlord insurance policy may look very similar to a standard owner-occupier policy. It’s imperative though that your policy is explicitly a landlord policy that will cover you and your essentially commercial activities surrounding the property concerned.
A standard owner-occupier policy simply won’t be sufficient even if, at face value, it seems to offer very similar cover.
You should also expect to see cover for the basic bricks-and-mortar of your property.
That might include risks such as:
- storm damage;
- burglary-related damage;
- flooding; etc.
Once again though, do look closely at the policy’s detail. For example, not all such cover will automatically include risks such as flooding and subsidence.
This category should offer no great surprises but it’s worth thinking carefully about a realistic valuation of your contents.
Note that even if you’re letting unfurnished, it might be a mistake to assume you have no need for such cover. While fixtures and fittings should typically be included in your building’s cover, the interpretation of what exactly a fitting and fixture is versus contents may differ between insurance providers.
Landlord cover might typically not include this as standard because you might not need it. It’s typically an optional extra.
It’s included here for completeness, as the law might demand you have such cover in place if:
- you have employees (whether on a formal contract of employment or not);
- you use casual staff to the extent that an employment tribunal or court might deem them to be de-facto employees.
This exists to offer you financial cover in the event that a member of the public is injured (or has their property damaged) as a result of your property.
If that sounds unlikely, remember that people are seriously injured or even killed by events such as slates falling off roofs, falling down the stairs due to loose carpets or slipping on rugs etc.
This is a broad category and might include things such as:
- being unable to let your property out for a period pending it’s repair after storm damage;
- needing to temporarily relocate tenants after damage;
- legal fees if you’re sued by tenants.
Do please note that these things may or may not be covered in a standard policy. In some cases they might again be optional extras.
For the sake of brevity, this article has only quickly skipped over some of the main aspects of landlord insurance.
It might be sensible to find out more from an experienced provider of landlord insurance cover, such as ourselves at Cover4LetProperty. Call us today on 0800 9707 172 for more information.