What is Landlord Insurance?
Landlord insurance is similar to buildings and contents insurance; however, the cover is designed to protect landlords on their rental or buy-to-let property. This can cover accidents by the tenant as well as cover the building itself from damage due to fire, storm and floods etc.
Landlord Buildings Insurance covers the main structure of the home; i.e. the walls, roof, windows and doors etc. There is not a legal requirement to insure your home, but if you have a mortgage on the property, it is likely your provider will insist you do.
Landlord Contents insurance essentially covers all the belongings inside the home unless otherwise specified in the policy plan.
Standard contents insurance includes white goods i.e. washing machines, dishwashers and fridge freezers. It will also include carpets, furniture, curtains and blinds.
What is Rent Guarantee?
This cover enables landlords to receive funds matching that of their regular rental income if the tenant renting the property has failed to make the payments themselves.
Long-running disputes with tenants can be financially damaging for landlords, who often need the rental income to cover buy-to-let mortgage payments.
Should mortgage arrears accrue, there is a risk that the landlord’s ability to secure a mortgage or other credit in the future may be compromised.
Regardless of where the fault lies, the landlord is responsible for the mortgage payment on the house so taking out a rent guarantee offers peace of mind should difficulties with tenants arise.
Is there legal protection?
Legal cover can be taken out by the landlord to protect them from legal costs that may be incurred as the result of a dispute, such as rent arrears.
Landlord Emergency Cover
As a landlord you have a responsibility to maintain the property for your tenant and unforeseen incidents such as a burst waterpipe or a faulty fire alarm may need fixing by a skilled tradesman at short notice at any time of the day or night, depending on the severity.
Landlord emergency cover provides cover 24/7 and can help recoup the cost of expensive out-of-hours callouts. This may be something you can arrange via the lettings or management company.
What is the ‘excess’ on a buildings and contents policy?
The excess is the amount you pay towards the damage or loss when making a claim on the policy.
There are two separate excesses, see below:
- Compulsory excess is the amount set by the insurer that you must pay when making a claim.
- Voluntary excess is the additional amount you are willing to pay when making a claim to lower the premiums. If you are willing to pay a higher voluntary excess the lower your premiums will be.
