Landlord insurance is specifically designed to help landlords protect the property they rent out from financial losses that may be connected with renting in the private sector.
Financial loss can happen in many ways, whether it is damage to the building, damage to the contents, an injury sustained by a tenant or even loss of rental income due to the property being empty. All these areas can be protected against with landlord insurance. Some areas are covered as standard (e.g. buildings insurance) and some areas will need to be added on as additional extras, so whatever level of cover you get will depend on exactly what level of protection you are looking for.
What does landlord buildings insurance offer?
Landlord buildings insurance is the absolute minimum level of cover you will need as a landlord. Landlord buildings insurance offers protection to landlords should the actual building be damaged as a result of a natural disaster such as a fire, flood or subsistence. Buildings insurance will cover the actual structure of the property including walls, floors, ceilings, roof, windows and doors. It also typically covers permanent fixtures and fittings, such as a fitted kitchen and bathroom suite.
The insurance will cover the total rebuild cost of your property should loss or damage be a result of a natural disasters such as, fire, flood, falling trees, subsistence etc.
Some landlord buildings insurance policies will include accidental damage cover, which will protect against damage caused as a result of an unexpected and non-deliberate external action to the property, by yourself or the tenant. It is important to check with your insurance company exactly what your landlord’s buildings insurance offers as standard and what you will be required to purchase as an additional extra. Buildings insurance does not cover the contents of your property, this will need to be added on as an extra.
Why should I get it?
Getting the right level of cover for your property is essential. Since your property is a means of income for you, it is important to protect its financial wellbeing. It is important to remember that standard household insurance will usually not cover a property that is rented out.
Although landlord insurance is not a legal requirement it is strongly recommended as it could save landlords a lot of money in the long run. It helps provide financial security for your business investment (i.e. your property) and ensure you have no sudden unexpected large repair bills to take care of. With the right insurance in place, your property and your rental business are financially protected, offering you some peace of mind.
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Posted by admin on November 22nd, 2012 :: Filed under Uncategorized