Landlord insurance gives you vital protection from damages caused by tenants or arising legal issues. Each landlord’s property portfolio is different, so when faced with unfamiliar situations, having the right type of cover is crucial.
Do I need landlord insurance?
Landlord insurance isn’t compulsory but it may be required by some lenders when taking out a buy-to-let mortgage and is useful to have when letting out your property to tenants. With a good policy in place you will be protected against loss of rent, accidental damage and other financial areas.
Can I get landlord insurance for multiple properties?
Portfolio policies are available to landlords who own multiple rented homes, this makes managing properties less time consuming and allows you to insure them all at the same time.
What type of landlord insurance do i need?
There are 3 main types of landlord insurance available with add-ons also available to suit your needs.
Buildings insurance
This is a requirement for buy-to-let mortgages and covers your for the following types of property damage:
- Vandalism and malicious damage, also as a result of theft
- Subsidence
- Burst pipes
- Earthquake, storm and lightning damage
- Oil or water damage
- Fire or smoke
Contents insurance
You can take out contents insurance as an add on or a standalone policy to cover the costs of repairing or replacing items you have provided in the property such as furniture, carpets and electricals.
Liability insurance
Liability insurance (or public liability cover) protects you from injury or damage related compensation claims made by a third party, this could be the tenant, a visitor or tradesperson. Some of this is included as standard in landlord insurance policies and can be invaluable when facing high compensation claims. Other optional extras can be discussed.
Questions & Answers
You can expect to pay 15% - 20% more for landlord’s insurance than you did for a homeowners policy. Risks can differ between tenants and homeowners, so there will be more to protect and cover.
Although a landlord’s insurance policy is not legally required, standard home insurance will not be valid when renting out a property. Your lender may not let you proceed and allow tenants until you take out dedicated insurance.
You should keep your insurer informed of any refurbishments made to the property, unoccupied periods of more than 30 days, changes to rent and new tenants. Your insurer can provide a full list of things you should keep them up to date with.
Please note, for insurance products term and conditions apply. This information is a summary only. You will receive full policy documents upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.