Landlord Insurance is like many other insurance policies you might have come across, in that a range of different cover options are often offered under one policy; sometimes these are included as standard, but if you take additional cover options that are not included as standard, you will usually incur extra costs.
It is important to be aware that, while some landlord insurance policies might look similar to your home insurance policy, they are very different. Standard house insurance is not going to be effective for your property protection requirements as a landlord. A standard home buildings or contents policy won’t consider the potential risks that landlords face, such as loss of rent and accommodation costs, should your tenants have to move out after an insured event, or cover for your liability as a landlord.
Building insurance
Standard buildings insurance covers structural damage to the building caused by fire, flood and storm damage. Accidental damage can be added for an additional premium. The premiums are calculated on the rebuild amount for the property. This can usually be found by having a survey carried out on the property or via The Royal Institute of Chartered Surveyors website.
Contents insurance
When it comes to contents insurance, it is important to note that your landlord contents insurance cover shouldn’t be confused with that of your tenant. Your tenant is responsible for the cover of their own possessions and to be on the safe side this should be clarified with the tenant.
If you let your property as “furnished”, your contents limit will inevitably be higher than if you let it “unfurnished.” This cover is not an essential, but basic contents insurance should cover accidental damage to glass and sanitary fittings as these would be expensive to replace. Carpets and lino are also often included under the contents.
Loss of rent
If you are paying a mortgage on your rental property or rely on it as a primary source of income, loss of rent cover is a sensible addition to your landlord’s insurance. Loss of rent cover allows you to meet monthly payments or revenue expectations if your property becomes uninhabitable for your tenants following a valid insurance claim. This could be the case if there were a fire or flood. Loss of rent sections will also pay for alternative accommodation while the property is being repaired.
Liability cover
This is an essential feature of any landlord insurance policy, as it offers protection if a tenant or visitor is injured on your property. This is often included as standard on most landlord policies, but it can also be added as an optional extra. It is important to check that this is included.
Legal Expenses
This is often an optional cover with landlord’s insurance. The essence of this cover is that it can help to gain repossession of your property following a dispute with your tenants and cover you for any associated legal or court fees. Rent arrears is not always included but with some insurers can be added on to the legal expenses for an extra premium.
If you have any questions regarding Landlord’s Insurance or if you would like to discuss how Omni Davis can find the right insurance for your business, property, car or home please contact us on:
Tel: 01403 785775 or 01243 864018
Email: info@omnidavis.co.uk
