Landlords Insurance

If you are a landlord, whether you have just one buy-to-let property or portfolio of them, you are running a business. Therefore, as with any other business, making sure that you have the right insurance in place is key to helping your enterprise run without any financial hiccups along the way. In the event that something goes wrong, having the right protection in place to help you financially is essential. And that is why a policy specially designed for people like you called landlords’ insurance (or buy-to-let insurance) can give you peace of mind that your investment (or investments) are properly protected.
One important point to note is that a traditional home insurance policy will not be suitable for a buy-to-let property. The type of risks to a property and its contents faced by a landlord are different to those faced by an owner-occupier.
For example:
• Rented properties are more likely to suffer from accidental and malicious damage;
• There may be periods where your property is empty. Things like leaks may go unnoticed, causing extensive damage, as well as an unoccupied property being potentially more vulnerable to theft;
• You could have trouble evicting a tenant;
• A tenant may default on their rent repayments;
• Furnishings can be damaged or stolen by tenants;
• A tenant may injure themselves while in your property and seek compensation from you.
These are just some of the problems that a landlord may face and which a traditional home insurance policy will not cover. Without insurance, if the unexpected happens, you will probably be liable for any costs. As an example, in the case of a broken lampshade, while it is inconvenient and annoying, this can easily be replaced. But in the case of flood, fire or a liability claim, then you could find yourself having to pay out hundreds of thousands of pounds from your own pocket.
After all, you are running a business and therefore need the right sort of business insurance in place.
If, as a landlord, you are protecting your investment property/ies with a traditional non-commercial home insurance policy, in the event of a claim you will probably find that your insurer will not pay out. It could also cause you further potential problems in the future in getting approved for insurance. That is why getting a specialist landlords’ insurance policy can be so essential.
The good news is that with buy-to-let properties more popular now than they were a decade ago, with many people seeing their investment property as a long term pension plan, the market place for building insurance for landlords and landlord home insurance has widened. This typically means that you can choose from a selection of specialist policies to find that one that offers you the cover you need, and at a competitive price.
It is important to note that different landlords’ insurance providers may offer different elements of protection, so never assume that a policy has everything you need from it. Always check to see what the cover entails or speak to a specialist provider if you are unsure.
So, what can a typical policy cover you against? A policy may include all or some of the following elements of protection:
• Cover whilst a property is unoccupied for up to a set period of time;
• Fire, flood, theft and subsidence;
• Malicious damage by tenants;
• Discounts if you have more than one property to insure;
• Public liability insurance for claims from tenants who have had an accident on the premises;
• Employers’ liability insurance to protect against claims from employees, such as maintenance staff;
• Free contents cover in communal areas;
• Student lets and properties let to asylum seekers;
• Protection against rent arrears and legal costs in evicting a tenant (this may also sometimes be sold as a separate policy typically known as Rent Guarantee Insurance);
• No claims discounts at renewal time;
• The option to pay by direct debit, thereby helping your cash flow.
This list is by no means exhaustive and some policies could offer less or more features and benefits, but it gives you a good idea of the sort of risks you need to get covered, as a landlord.
So, where do you start looking for the cover that best suits your needs? Probably the easiest and quickest solution is to use an online specialist provider of this type of cover. UKinsurancenet are one such online provider who a have large panel of landlords’ insurance companies that they can access in order to find you the policy that fits the bill. Quotes are available over the ‘phone or you can request a call-back from their UK-based team at a time convenient to you via an online form, without obligation.
As you can see, landlords’ insurance is a very important part of your business planning, so it makes sound financial sense to ensure that you have the most suitable cover in place.