Landlord Insurance Cover: What you need to know


One of the most important things you must consider as a landlord is how to protect yourself as well as your investment, one of the best ways to do this is by taking out an appropriate landlord insurance policy that adequately covers you and protects your asset.

In this article, we will be answering some of the most common questions about landlord insurance and policies as well as other types of insurance or policy you may want to consider.

What’s the difference between landlord insurance and homeowners insurance?

Home insurance covers a private residence and their property, this kind of insurance policy normally combines personal insurance cover and liability insurance for accidents that may happen at the property.  

However, it will almost certainly be inadequate to cover you as a landlord against the risk of damage (or worse) to your property as there are plenty of areas it does not cover such as property owners' liability, home emergency cover, accidental damage cover, etc. Landlord insurance is more comprehensive and is designed to protect landlords against several situations that can affect their rental properties. 

Is it a legal requirement to have landlord Insurance?

It is not a legal requirement to take out landlord insurance. However, this may be compulsory in your contract with your letting agent, mortgage or loan provider. The consequence of having inappropriate cover can be disastrous, so it’s worth checking if this is a requirement with any of the mentioned providers.

What types of landlord insurance are available?

Landlord buildings insurance: Covers your rental property for damages.

Landlord contents insurance: Covers the items in your rental property if they get destroyed or damaged.

Landlord property insurance: This typically combines buildings, contents, landlords’ liability insurance and some additional cover to protect your rental property.

Portfolio insurance: Also known as multi-property insurance covers landlords with multiple properties under one insurance policy.

What other types of insurance could I need?

There are quite a few other insurance products available for landlords and their rental properties; these can be add-ons or stand-alone policies such as:

Home emergency cover: Protects your rental property against unforeseeable circumstances like faulty locks, plumbing and electrical issues, etc. 

Rent guarantee cover: Helps to cover you in the event that .your tenant defaults on their rental payments

Legal expenses cover:  Protects you if you need to take legal action to obtain vacant possession.

Which insurance will give me the most cover?

To identify which insurance will be best for you, you will need to think about what you need your policy to cover and any optional add ones you may like to include in your cover. This may vary from one landlord to another depending on what type of property is being let out as well as how many rental properties the landlord owns.

It’s a good idea to do some research online to get a better idea of the types of insurance available which may best suit your needs. For example, if you are a landlord of Houses of Multiple Occupancy (HMO) then you will want to have specialist insurance that caters for this type of property.

Once you have identified the type of landlord insurance you need, you can then start comparing different policies and prices.

The haart Investor Services Team is here to help customers obtain more information about how to maximise their investments in the current property market for more information contact Kate Hurles on 079 6012 0267 or email investor.services@haart.co.uk

 

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