Landlord Insurance: An Essential Guide
Many insurance companies also offer legal and professional help as well as emergency cover, be it boiler problems or even a burst pipe.
It is also possible to adapt your landlord insurance to cover a rent guarantee which will cover you in the event of tenant default. A prudent landlord will always have this provision in their policy. This is especially essential to the landlord who has a ‘buy to let’ mortgage, where a default by a tenant could cause this type of landlord severe cash flow problems, especially as non payment of rent by the tenant could reach long durations. This would, of course, cause the small landlord hardship as he still has to pay his mortgage on the property.
This is where the legal insurance cover would come into its own as your legal representative will know how to handle tenants who do not pay rent on time and get into arrears. They will protect your interests.
It is also possible for a landlord to insure unoccupied property and overseas property.
A new cover has recently been introduced for the ‘Eviction of Squatters’ which is essential these days.
Other additional features that should be considered, and can be added to your standard policy, are
- accidental damage, incorporating damage to fixed glass
- contents cover which can include curtains, carpets, blinds and electrical items
- malicious damage caused by tenants
- theft or attempted theft
It is also very important for the landlord to advise the insurance company what type of tenant is in their property. Be it professional people, retired, students, local authority placements or even asylum seekers as this may have a bearing on the amount of premium you pay.
Most policies also include instances where the property is unoccupied in between tenancies or when being redecorated or renovated.
Many policies are of course flexible and can be altered with the insurance company as contingencies change.
International Property Insurance
Landlords who have overseas properties are most vulnerable being that they are normally living in the UK whilst the property is abroad. Even if they have management companies abroad looking after their properties, it is important that they have adequate landlord insurance as if the property was in the UK. This applies especially when the property abroad is not being occupied and is often a prime target for burglars.
Policies will normally cover your property for unlikely events like lightning, earthquake, riot, collision by aircraft, falling trees, branches, lampposts or even telegraph poles.
However, special attention should be given to see if you are covered for subsidence or landslide. Your insurance company will normally send a surveyor (at your own expense) to test the ground and see if the property is in an area that is susceptible to subsidence and similar problems. This may cost extra in the premium and the landlord should happily pay it.
Landlord Housr Insurance | Standard Policies
Standard policies will normally cover for flats, apartments, bungalows, houses and commercial properties. It will also cover loss of rent, employers liability, property owner liability, insurance on new for old basis, replacements of locks due to malicious damage or robbery.
However, there are normally small excesses, approximately £250 for buildings and £50 for contents cover.
It is also becoming more popular for a landlord to have insurance to cover identity fraud, especially when one takes up personal references.
Yes, landlord insurance is an expense which is necessary and should be investigated fully before choosing the policy which is ideal for your needs.
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