What Benefit Is Landlord Insurance?
Pippa & Benoit have a fantastic track record sourcing and securing excellent tenants for the portfolio of properties they are appointed to let and manage. However, it’s always important to have the right protection in place should a tenant or property present unwelcome and unexpected challenges. This could be anything from unpaid rent to a moth infestation.
With that in mind we have recently been introduced to Aston Lark, insurance brokers and specialists in the investment property sector who have shared their expertise with us to help you avoid costly mistakes when choosing landlord insurance.
With the help of Aston Lark, insurance brokers and specialists in the investment property sector, we have prepared an FAQ on all things Landlord Insurance to help inform your choice and prevent costly situations. By knowing what you require and what you can forgo, you can make more informed decisions.
What is Landlord Insurance?
Landlord insurance is a type of insurance specifically created for rental properties. It is important to know the available options if you are considering renting out a property. Regular home insurance policies do not provide coverage for rental properties, making it necessary to obtain landlord insurance for proper protection in case of a claim. In fact, if you have a mortgage on your property or are planning to use one to purchase a rental property, lenders can make it mandatory to have valid landlord insurance.
Why is landlord insurance important?
Landlord insurance is designed to provide protection against the specific risks that rental properties may face. While there are common risks like fire, flood, and malicious damage that all property owners face, rental properties come with additional unique risks. These risks include potential damage to furnishings by tenants, the possibility of compromised home security due to frequently exchanged keys, and the risk of tenants failing to make rent payments. The good news is that landlord insurance can be customized to effectively address a diverse range of these risks.
So, what can landlord insurance cover?
Landlord insurance can cover various elements depending on the insurance provider. Some types of coverage include landlord home emergency cover, rent guarantee cover, property owner's liability insurance, cover for tenant default/loss of rent, landlord contents insurance, accidental damage insurance, buy-to-let buildings cover, landlord's legal protection, and employers liability insurance. These coverages protect landlords from various risks such as emergencies, loss of income, property damage, legal expenses, and employee accidents.
What affects the cost of your landlord insurance?
The cost of landlord insurance is determined by several factors, including your claim history, level of excess, number and type of tenants, type of occupancy, property rebuild cost, property age and location, and add-on cover. Adding additional coverage may increase the premium, but it is important to ensure proper coverage to protect the profitability of your investment.
How do you get landlord insurance if you have more than one property?
To get landlord insurance for multiple properties, landlords can consider portfolio policies that provide coverage for all their properties at once. It is important to carefully review the terms and conditions of any policy before choosing the one that best suits individual needs. Paying attention to details such as excess fees, administration fees, and the total value of insured assets is crucial, as getting the cheapest quote may not always provide adequate protection.
Find out more!
Typically, when you rent a property, it is necessary to have landlord insurance as it is a requirement for your mortgage. However, having landlord insurance is a smart decision to safeguard your property and provide protection for your assets and income. If you need assistance in determining the right landlord insurance policy for you, Pippa and Benoit are happy to help – get in touch and we can put you in touch with specialist advisor.
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