A question we are sometimes asked by landlords is "Do I need to bother with landlord insurance?" So to answer the question this week's informative guest blog comes from the Residential Property Department at Schofield Insurance Brokers Ltd based in Leeds and covers the important topic of Landlords Insurance.
Landlords Insurance – what is it?
Quite simply, it’s insurance that gives specific protection for rental properties. This could also include holiday home insurance or any circumstance where a residential property is let to others.
As a landlord you need a particular type of insurance for properties you rent out to tenants. This cover usually includes the same type of protection as your usual house insurance, such as cover for buildings and contents, with additional cover for certain situations. Property owners liability on a landlords policy is very different to that provided under a normal owner occupied household insurance.
As a Landlord you need Cover for:
Loss of rent, or cost of alternative accommodation. Under your tenancy agreement you will be responsible to make sure the tenant is given alternative accommodation, until the property is deemed habitable again
Damage to your property (by the tenant)
Liability for accidents in your property causing injury to tenants or contractors
Legal costs. Fees can stack up very quickly with any contract disputes, repossessions or debt recovery situations.
Extra cover available to Landlords:
Non-payment of rent
Emergency call out service
Do I need landlord insurance instead of regular house insurance?
The answer is YES. If you are the owner of a property that you want to rent out it is in your best interest to make sure you have the right cover. Indeed if you have a buy to let mortgage on your property, your lender may specify that you must have landlord insurance in place.
Most insurers will offer cover for multiple properties and UK holiday homes and you should be able to obtain preferential rates for multiple properties.