What you should know about landlord building insurances
Many landlords who are new to letting a property don’t realise that they need specialist insurance to cover the properties they rent out.
Rent Guarantee insurance
There may be an occasion during the tenancy where your tenant has difficulty paying their rent for a number of reasons. It can happen to the best of landlords. Rent Guarantee insurance can protect you as a landlord from being out of pocket as it pays out in this scenario.
A Rent Guarantee policy also includes legal expenses cover providing 24 legal support as well as covering the cost of disputes in relation to repossession, eviction and recovery of rent arrears. It’s an invaluable policy for landlords who rely on the rental income to pay the mortgage.
When placing insurance on a rental property , decide on what type of tenant you are attracting, as some insurances may have restrictions on Housing benefit claimants
Legal cover - You can add legal cover to your landlord’s buildings and contents policy to provide you with legal protection for the following events:
- Property damage, nuisance and trespass
- Recovery of rent arrears
- Prosecution defence
- Accommodation costs
- Malicious damages
So what’s needed?
- Landlords buildings insurance - compulsory
- Landlords contents insurance for the items you provide in the property for your tenants - optional
- Home Emergency cover – optional
- Rent Guarantee and Legal Expenses cover - optional
Here’s a quick summary providing more information on each type of cover.
Landlord’s buildings insurance per property – having this in place is a requirement set by your mortgage provider. It covers your property for loss or damage including;
- Fire or smoke
- Theft, Vandalism or Malicious Damage
- Oil or water leakage
- Lightning or Storm (excludes gates and fences) or earthquake
- Burst pipes
- Impact caused by vehicles, falling trees, animals, aircraft, aerials and masts
- Civil commotion
- Property Owners liability
Portfolio insurance – where you insure more than 5 properties on one policy. Portfolio insurance covers you as above, however you can insure 5 or more properties on one policy, with one premium and one renewal date, making paperwork less taxing. These policies are built around your needs and are tailored to your requirements. You can also insure blocks of flats on these policies.
Empty Properties Insurance
Through our trusted patners, Empty Property Insurance can be arranged for properties which are likely to be unoccupied for a period of time. These provide cover for theft and damage, including water damage and subsidence. We also check the property on a regular basis and provide an update to the insurance company to ensure continued cover if the property is likely to be unoccupied for more than 30 days.
Home Emergency cover – You can add home emergency cover to your landlords buildings and contents policy to protect your property and your tenants against the loss of essential services. This cover protects you 24 hours a day for emergencies in connection with:
- Plumbing and heating system problems
- Security of doors and windows
- Roofing problems
- Drains and sewer blockages
- Down pipes and guttering
- Domestic power supply problems
- Lost keys
- Vermin infestation
Working through our panel of Chartered Building Surveyors who will endeavour to assess your insurance claim ( Loss adjustors ) providing the guidance you require.
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