Investing in a buy-to-let property is a complicated process, not least due to the specialist mortgage required and all the paperwork that goes alongside becoming a landlord. A crucial part of this process is ensuring you have the correct insurance to cover your property while tenants are (and aren’t) in situ. Read on to find out the types of insurance available to landlords.
Landlord insurance is a specialist insurance that covers your rental property and, as with any insurance, it’s crucial to ensure that you take out a policy that covers you adequately and will protect you in the event of loss or damage. Different policies will offer varying levels of cover, enabling you to personalise the cover according to your needs. These options will usually include:
- Loss of rent to cover you if the property becomes uninhabitable, for example, in the case of a fire.
- Malicious damage to cover against any purposeful damage carried out by the tenant.
- Contents cover to insure against damage to furniture (if the property is furnished).
- Landlord’s liabilities. This covers, for example, if a tenant is injured by a falling roof tile.
- Vacant property insurance, which will provide cover for a property when empty, usually for a period of 90 days.
- Rent guarantee gives you the peace of mind that you will receive rent payments even when a tenant defaults.
- Home emergency provides cover for emergencies such as a broken-down boiler, plumbing emergencies, security problems, and sewer blockages.
- Key insurance in case keys are lost, broken or stolen.
- Multiple property insurance for landlords with more than one investment property.
There is no legal requirement to take out a landlord insurance policy although it is advisable; a normal home contents insurance policy will not cover you if you are renting your property out to tenants, and some mortgage lenders will require you to take out a policy as part of their buy-to-let mortgage requirements.
Talk to us if you need any advice regarding landlord’s insurance.
