The Essential Guide to Landlords' Insurance

If you are looking to rent out your property, having building and contents insurance is essential. Buying buildings and contents insurance from a specialist landlord insurer such as Simple Landlords gives you peace of mind knowing that your property, and your income, is covered should the worst happen.

Having basic buildings and contents insurance is not enough if you have tenants. There are many complications that arise from letting out your property. What happens if your tenants refuse to pay rent or damage your property? Who pays the legal expenses if you have to take them to court?

Sometimes known as ‘buy-to-let insurance', landlord insurance not only covers you for any damage to the building or contents but also covers loss of income, for example, if your tenants have to move out after a fire. It will also cover you in the event of one of your tenants having an accident within the property which is deemed your fault.

There are three main features to landlord insurance: buildings, contents and liability. Buildings insurance covers the structure of the property, and you should make sure you insure against the total cost of rebuilding your property (not the sale value). Building insurance covers you for any damage done to your property, for example as a result of storms, flood or fire. It will not however automatically cover your outbuildings, such as garages and sheds. It may be a requirement of your buy-to-let mortgage to have buildings insurance in place.

If you are renting out your property part or fully furnished you need to think about contents insurance. This will cover any accidental damage to furniture, carpets, electrical equipment and so on.

Liability insurance will cover you if one of your tenants is injured at your property and you are held liable. This will also protect you against the costs of compensation claims made against you for personal injury.

Your landlord insurance can also cover you for lost income in the event of missed payments, for example if your property is empty between tenancies or if a tenant refuses to pay their rent. Legal expenses cover will cover your fees should you have to take them to court.

You may also need to consider adding employer's liability insurance if you hire staff to maintain or run your properties. This is a legal requirement if you have employees and will cover you for any accidents they may have at work.

How much you pay for your landlord insurance will depend on where the property is, the type of tenants in the property, how secure it is, past history of claims, the age of the building and the type of property it is.

You can reduce the cost of your premiums by increasing the amount of excess you are willing to pay and adding security features such as a burglar alarm. You may also qualify for a no claims discount if you keep the policy for several years without needing to make a claim.

For further information, contact:-
Simple Landlords Insurance