At the moment having insurance for properties that are let is not required by law but there are very good reasons to have insurance, to be on the safe side. The majority of householders already have home insurance but if you were to let the property the insurance in place will not usually cover any damages that re made if someone else was to inhabit the property.
Do I really need landlord insurance?
Its good practice to have it as you may only require minimum requirement such as building cover. Building cover will insure your property against any damage that might require the property to be rebuilt. If you would like further coverage such a fire, theft and damage you can opt for this too.
What is covered in landlord insurance?
As all insurance companies differ in what they cover it is worth checking what you want is realistic and affordable. Although when you let out a property a deposit is given for any damage that may be caused so you are covered in some way, the chances that the deposit would cover all damages are very slim. If you have insurance you could claim and have the property ready for rental again in no time.
Some of the things that landlord insurance covers
- Fire damage
- Contents insurance
- Loss of rent insured
- Alternative accommodation insured
As all policies vary its best to check with your quote thoroughly to see if there are any clauses. For example some insurance provide you with accidental cover for free. The clause is this is only available if your tenant is a professional or is retired. So it may be best to make sure you would still be covered if you were not housing a professional or a retiree.
The competition for landlord insurance is high but many of the insurance companies are not known. It would be best to do some research before you accept a quote blindly and if possible go with a well known insurer as you know they won’t be filing for bankruptcy anytime soon. If you have more than one property you may benefit from further savings as the more you insure the bigger discount you get.
How much does landlord insurance cost?
Depending on the level of cover needed it should cost less than insuring your home, there is the added benefit that the excess for claims can be as little as £50.