Landlord Insurance
There are a number of different Landlord Insurance companies offering landlord insurance. They may cover, let property, unoccupied property, property let to DSS, and commercial property. Make sure you know exactly what the landlord insurance policy is covering before you make your decision.
Landlord insurance is not a legal requirement, although most lenders will want to have confirmation that an insurance policy is in place if a buy to let mortgage has been applied for. As a landlord you should consider your properties to be a business and with business there is always a risk element and investment properties should be treated in the same manner. Without suitable landlord insurance, a theft or fire can have a very detrimental effect on your long term investment and the long hours you have invested in building up your property portfolio. As owning buy to let properties becomes increasingly popular, it is important that landlords are properly covered.
As a landlord it can be very tempting to opt for the cheapest policy. This is not always best practice. Finding the best landlord insurance does not have to be difficult providing you know exactly what you are looking for.
As a residential landlord, it would be their responsibility to insure the building and any contents belonging to the landlord. For example light fittings, kitchen units, heated towel rails. As well as a landlords insurance covering things like fire, theft, vandalism, leaks, smoke damage, subsidence, burst pipes to name but a few, there are a number of additional options that may be available.
- Landlords Liability - If someone is injured at the property due to negligence of the landlord
- Rent Guarantee
- Legal Expenses - Costs towards legal expenses when having to evict problem tenants
As far as tenants go, generally the tenants would then take out their own contents insurance cover protecting their personal belongings in the property.