Most homeowners have good building and contents insurance, however, it is equally important for landlords to consider their insurance policies, making comprehensive insurance cover for landlords a priority.
Standard buildings and contents cover is inadequate, and potentially invalid, for properties that are occupied by tenants.
A property could be used for business or residence by tenants, but landlord insurance is vital regardless. It is the most secure way of ensuring adequate cover if anything were to happen to the property. Property is a substantial financial investment, and should be protected against any damage.
The Different Types of Comprehensive Insurance Cover for Landlords
Landlords Building and Contents Insurance
Similarly to standard homeowner policies, landlords building insurance, and landlords contents insurance are available. Buildings insurance protects the cost of repair to structural damage to the property.
Contents insurance can be customised to suit the property type, and will provide cover if the property is rented out furnished.
Landlords Liability Insurance
This is a significant policy, which protects against the majority of risks. Increasingly, tenants are making personal injury claims against their landlords for accidents that have happened in the rental home. Landlords liability insurance will cover this type of claim, plus any legal fees if the case went to court
Loss of Rental Income Insurance
Rental income is a priority to most landlords. Although other policies will cover any damage to the property, they will not cover a loss of income whilst the home is uninhabitable. Mortgage repayments are, however, still expected during these times, and rental income insurance can cover any lost rental income for a certain timeframe, most likely 12 months.
All landlords, whether they own one or many properties, should have suitable landlord cover. It is worth researching different policies to find the most adequate and cost effective.