Landlord Insurance is a type of policy that covers a property owner from financial losses connected with rental properties. The policy covers the actual structure of the property with the option of insuring any contents that belong to the landlord that are inside.
What does landlord insurance cover?
The landlord insurance policy will normally cover standard perils such as fire, lightning, explosion, earthquake, storm, flood, theft and malicious damage.
Policies typically do not cover any personal property belonging to tenants.
As a landlord, you need certain extra cover, including for:
- Non-payment of rent
- Damage to your property (by the tenant)
- Loss of earnings
- Liability for accidents
Rental guarantee cover is an “add-on” which will increase your premium
What you need to know about landlord insurance:
You need to make sure to compare quotes and don’t make your decision based on price alone. Ensure that the policy covers exactly what you need. As a landlord you need to make sure that your property is sufficiently covered. Take your unique needs into account as a landlord.
You can also buy multi-property landlords’ insurance
If you own more than one property you can get a form of insurance that combines your multiple policies into one. This will make the claims process easier and will streamline your administration needs, making it easier to keep track of coverage.
You should keep the insurer up to date with any changes, including a change of tenants and any void periods when the property is empty. This could have an effect on the amount of cover that you have.
You need to make sure that you check the sum insured, which is the maximum that you can claim if the property is completely destroyed. It’s vital to make sure that you understand fully what your landlord insurance policy covers.