Landlord Insurance Guide

If you have a property portfolio as an experienced landlord or are just starting out here’s our guide to the types of insurance you should be looking at having to cover yourself against any issues you may face.

Many landlords know that having the right cover in insurance can provide piece of mind against the building they own and the tenants that are renting their buy to let property. There are many providers and insurance policies around so just what should you look at buying and how do you find the right company to help protect the investment you have before letting it out to new tenants. Here are the main features you should look at having.

Landlord Contents Insurance – Even if you don’t rent your property as partly or fully furnished you may still have items that aren’t covered if there are accidents such as carpets and flooring. Of course if you do provide furniture and electrical items you may want to check any policies you have to protect yourself in this area

Landlord Buildings Insurance – This covers the actual building itself against any disasters including flooding and fire. Some leasehold properties may already have this cover included in the management fees you pay to the leaseholder but it’s worth checking. If you have a freehold property then this is essential and it may well be a condition of your mortgage provider to have this.

Landlord Liability Insurance – This covers you against accidents to people visiting your property and with personal liability claims on the rise it may be something to consider which will cover legal fees as well as the actual claim itself.

Those are the main types of insurance that every landlord should consider and there are also additional policies to consider for other elements as follows.

Rental Guarantee Insurance – For the most part tenants will pay their rent on time and you won’t have any problems but if you do you may be out of pocket. You can get some low cost cover that will protect you if the tenant defaults and also help you evict them. This insures that if they refuse to pay that you will continue to receive the income that was in the original agreement.

Legal Expenses – For whatever reason if you need to take your tenants to court for any disputes that may arise then the costs that are involved can be high. You can take cover out to mitigate these expenses and perhaps cover the loss of income during any dispute.

Choosing the right provider

There are many specialist companies that can provide all these types of insurance and choosing one may come down to cost but you will need to read the terms and conditions to see the exact level of cover that is provided to ensure that you don’t get any nasty surprises. The level of excess you pay may also vary and in general the higher this is the lower the premiums are. Experienced landlords will be able to ascertain the level of claims they have had during recent years so can decide the excess they can pay but if you are new to this side of business you should think before having too high a level depending on your circumstances. For more information please visit our home page to get cheaper landlord insurance from a wide range of companies.