This is an essential element of letting that provides financial protection for landlords renting a property to tenants.
Let’s look at which is the best insurance company to use, considering cost and quality of cover?
In addition to protecting buildings and contents, landlord insurance policies can cover non-payment of rent.
British landlords Association broker offer tailored policies that generally may include the following: Landlord’s buildings insurance that will cover you against a range of potential disasters.
These could affect your rental property, such as fires, lightning, storms, floods and earthquakes, as well as an escape of water or oil, falling trees or branches and collision by vehicles.
Not all policies are the same, nor do they cover all the things that you might expect. Before you can decide which is the best company to use, you need to know some of the things you should have covered in your policy. We hope this blog helps and makes you aware of the best policy for your need.
Landlord Legal expenses cover
Landlords’ Legal Expenses covers the legal cost of eviction of tenants following breaches of their tenancy agreement. The legal cover includes rent arrears, sub-letting, or intentionally causing damage to the let property.
Buy Rent cover
“Rent Guarantee insurance” is different from the “Loss of Rent” cover. Rent cover will cover you for rental income if the let property is uninhabitable due to an insured event, for examples such as flood or fire.
A rent guarantee is when the tenant has failed to pay rent, and the policy kicks in and starts paying the rent. There seems to be a vast difference between rent guarantee insurance so check the policy very carefully before buying.
Boiler & Heating Cover
It gives the landlord and the tenants’ access to a 24-hour helpline. You contact the helpline in an emergency. If this service is bought as a standalone product, it includes an optional Boiler and Heating Cover as standard.
Malicious damage by the tenant cover
A standard policy will usually cover against potential issues like fire and lightning trace and access (such as any damage done to locate a leak, like removing wallboards or floorboards to access plumbing), theft, malicious damage, and vandalism.
Nearly all insurers cover accidental damage cover; you should consider if this is a risk you want to be covered when taking the policy.
Legal liability for landlords
Liability cover generally includes legal liability as owner up to £5 million, occupier’s legal liability and worldwide personal liability up to £5 million. Public liability up to £5 million, and employer’s liability up to £10 million. You should check if the policy covers injury and other risks that may be of interest to you.
What do a buildings insurance policy cover?
It covers the building; however, you can cover other risks like rent guarantee, employer’s liability, landlord liability.
Some landlord insurance policies will cover their customers as standard some of the most essential elements of insurance that a landlord generally needs.
Check the policy you take out to ensure if it is fit for your purpose.
Do I have to have landlord insurance?
If the landlord owns the property as a freehold, then it is optional. However, it is highly advisable to ensure your investment.
It is not a legal requirement, however, if you have a mortgage on the building. It is likely as part of the mortgage terms that you will be required to ensure the building.
What is landlord liability insurance?
This is public liability insurance for landlords. It can cover your legal and compensation fees if someone is injured or their possessions get damaged.
How to get the right landlord insurance
Speak to the insurance broker who specialises in landlord insurance. Any broker who specialises in landlord insurance will be able to advise you on the various policies and areas of risk you ought to consider insuring against.
Suppose you have a block of flats or multiple properties. In that case, you can consider insuring the entire portfolio with the same broker. This will usually work out much cheaper, well as making administration more manageable.
How do I make a claim on my landlord insurance policy?
Some good insurance brokers have in house claim departments for their customers who can assist you in making a claim in the event of damage or loss.
Do I need contents insurance as a landlord?
You ought in case the tenant damages the carpets etc., or furniture if the property is let fully furnished.
Do I need landlord insurance if I live on the property?
If the building is let or a private dwelling, you should still insure it. If the property is going to be let, you should check the terms of your mortgage.
What does a good landlord insurance policy look like?
The policies on our insurance broker list include many benefits as standard that are offered as optional extras by rivals. And the level of cover of these benefits is often higher than other insurers. The landlord policy covers the following things as standard:
- malicious damage by tenants,
- loss or damage to buildings and content,
- loss of rent,
- unauthorised use of electricity/gas/water and white goods cover.
- Also, it provides £5m of property owners liability cover. In contrast, many other providers only offer £2m of cover.
Will standard home insurance cover my rental property?
No, if you are going to rent the property, you will need to make sure your insurance policy covers landlord cover.
Is landlord insurance tax deductible?
- general property maintenance and repairs (not cosmetic improvements)
- Accountants fees
- water rates, council tax, gas, and electricity
- costs of services such as gardeners and cleaners
- letting agent fees and management fees
- ground rents and service charges
- costs of advertising for tenants etc.
How to get cheaper landlord insurance
You can join the British Landlords Association; membership is Free. Once you are a member, you can take out insurance and get a 20% discount on your insurance. Also, The BLA insurance broker will beat any existing quote too.
Can I get landlords insurance for multiple properties?
Yes, you can, and you ought to have one policy covering all the properties; this may make your premium much cheaper.
Will content insurance I take out cover my tenant’s contents too?
No, but it will cover all the furnishings you have supplied, such as sofas, beds, kitchen appliances etc. Your tenants will have to take out an independent cover for their own goods.
Can I insure my property if it is undergoing building work?
Properties undergoing renovations or in a poor state of repair are considered high risk. As such, you may have a fewer number of insurers willing to insure the building.
What is the difference between buildings and contents insurance?
The difference is that buildings insurance covers the property’s physical structure and walls, roof, and floors. Contents insurance covers what is inside the property, including furniture and freestanding appliances.
We use an award-winning insurance broker to provide products for our members that offer an excellent level of cover and a discount on your premium. Besides, they guarantee to beat any existing insurance quote. For a free, no-obligation quote, click here.
Source: British Landlord Association
Author: Simon Hampton firstname.lastname@example.org
Date: 29th of March 2021