Letting properties is a fantastic way of increasing your income, however it does not come without its risks and responsibilities.
As well as maintaining the building yourself, you rely on the tenant keeping the property in good condition and paying rent on time. Thankfully, landlord insurance policies can minimise these risks to make letting your property stress-free.
What protection do you need?
As a standard home insurance policy does not cover lettings, a landlord insurance policy is required to ensure all damages, disputes and finances are covered. Although it is not a legal requirement to have an insurance policy of this type, not doing so could lead to major issues should problems arise.
On top of the basic landlord insurance policy, there are also more specific policies you can add to cover a range of different issues and circumstances. You may require different policies for different lettings, so it is crucial to look at what cover you might need for each property.
Buildings and contents cover
Landlord insurance policies include building and contents cover, which would protect you if your tenants were to cause any damage to the property.
This includes both damage to the building itself, such as a smashed window, and damage to the furnishings provided, such as a broken wardrobe.
It is the responsibility of the tenants to sort their own insurance policies for items they bring into the property, including their own furniture.
Injury and damages
Landlord liability insurance protects you from potential compensation claims in the event of tenants injuring themselves or damage being caused to the building or its contents as a result of the property.
For example, if a tenant tripped on a loose step and decided to take legal action, your landlord liability insurance would pay any compensation, expenses and legal fees within the limit stated in the policy.
Tenant default insurance provides you with financial protection in case a tenant was to default on their rent payment. You will also be covered for any loss of finances as a result of your property being uninhabitable over a period of time in circumstances such as flooding or fire damage.
Additionally, you may choose to include unoccupied property insurance which covers a property in the event of theft or damage while it is left vacant. This is especially useful if you are looking to rent to students who often return home for the holidays.
You can also choose to include legal protection in your insurance policy, which will help save you money should you need to make a legal claim.
This policy provides financial cover in situations such as evictions and repossessions, which, despite the extra cost, could prove useful in case these types of scenarios were to occur.
To find out about our range of letting services, contact our expert lettings team today