A Guide To Landlord Insurance - Why You Need It & What To Include


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A guide to Landlord Insurance providing advice to existing and prospective Landlords in the UK. Understand what Landlord Insurance is, what it covers and what you need to include.

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A Guide To Landlord Insurance - Why You Need It & What To Include

  1. 1. Why You NeedIt & What ToIncludeA GUIDE TO LANDLORDINSURANCEhttp://www.flickr.com/photos/uggboy/4406126399/sizes/m/in/photostream/http://www.flickr.com/photos/ell-r-brown/4325812085/sizes/m/in/photostream/ http://commons.wikimedia.org/wiki/File:House_key.jpg
  2. 2. Landlord insurance or „buy-to-let‟insurance is something you needto look to purchase if you have aproperty that you rent out.This can be commercial orresidential.It is what will cover you forunforeseen eventualities such as: Loss of rent Accidental or malicious damage Public liabilityWHAT IS LANDLORD INSURANCE?Landlord Insurance =Protection for Landlords
  3. 3. If you own a „buy-to-let‟ propertythat you are renting out totenants, then you should look topurchase Landlord insurance if youare said “Landlord.” The Landlord - DEFINITELY The „Freeholder‟ is responsible forinsuring the building „Leaseholders‟ will need to applyfor Landlord insurance if they havethe right-to-manage or share of„freehold‟WHO NEEDS LANDLORD INSURANCE?If You Are A Landlord ThatRents:• Flats• Houses• Large blocks• HMO‟s (Houses in MultipleOccupation)• Commercial properties
  4. 4. Most Landlord insurancepolicies will cover you for thefollowing: Aircraft Earthquake Explosion Fire Flood Lightning Storm Escape of WaterWHAT DOES LANDLORD INSURANCECOVER?Some insurers may not include all of theseperils in your policy. Their inclusion maydepend on postcode checks and/or yourproperty history.
  5. 5. ACCIDENTAL DAMAGE: Some insurers will include this within yourpolicy but many will make this an additionalcontingency. However, it is always best to coveryourself for this as everyone hasaccidents, especially if you are renting yourproperty to families with childrenMALICIOUS DAMAGE: If you can, it is always best to include maliciousdamage cover in your policy (if it is not includedin your standard policy) becauseunfortunately, Landlords can be subject toadditional costs and repairs left intentionally byangry tenants. This includes the damage causedby Cannabis FarmsWHAT DOES LANDLORD INSURANCECOVER?Insure for theunforeseeable!You aren‟t psychic.
  6. 6. PUBLIC LIABILITYAs a Landlord, you areresponsible for the health andsafety of all persons that visityour property: Postmen/women Couriers Tradesmen(Plumbers, Electricians etc…) Health Visitors DecoratorsIf a member of the public injuresthemselves due to a safety issuewith your property, you will beheld accountable and liable forcompensationWHAT DOES LANDLORD INSURANCECOVER?LandlordInsurance willcover legal feesfor Public LiabilityclaimsSome claimshave reached upto £1m
  7. 7. CONTENTS COVERIf you are renting out a furnished propertyto save you paying for storage, then youneed to ensure contents cover is includedin your Landlord Insurance. (Especially fortheft)Note: This does not include your tenantscontentsThis may include: Washing machine Dishwasher Microwave Sofas Beds Tables Drawers WardrobesWHAT DOES LANDLORD INSURANCECOVER?Contents are anythingthat does not stick tothe floor
  8. 8. LOSS OF RENT Many Landlord insurancepolicies will protect you fromloss of rent, covering thevalue of up to 20% shouldyour property be inhabitablesubject to a fire or flood etc… Some (but not many) insurerswill offer up to 30% cover forloss of rent As rent is either your sourceof income or what will bepaying your mortgagebroker, it is an importantcomponent to have protectedWHAT DOES LANDLORD INSURANCECOVER?You may also want to considerinvesting in „Rent GuaranteeInsurance‟ separately.„In the first three months of 2013 thenumber of tenants more than twomonths behind on their rent rose by4.8%...‟
  9. 9. The age of the propertyIf the property has been subject to any rebuildsThe renewal premium for your current policyprovider (if you have one)The current state of the property eg: Vacant/NotVacant (If your property already has tenants youwill need to know their occupational status for aquote)If you have previously had insurance declinedWHAT YOU WILL NEED TO KNOW FOR ALANDLORD INSURANCE QUOTE
  10. 10.  Additional premiums and fees – Someinsurers will add a premium to yourpolicy for vacant properties. Thispremium will only usually be enforcedif your property is vacant for 30-60days Be honest – If you do not answer theinsurers questions honestly, or forgetto update insurers on the current stateof your property; your policy maybecome VOID Read and understand – Read yourpolicy. It is your responsibility to knowyour policy. If you don‟t understandsomething, research it or ASK yourinsurer. They are there to advise you asmuch as they are there to insure youLANDLORD INSURANCE ADVICE: WHAT TOLOOK OUT FORIt is your responsibility toknow your policy!Speak to your policyprovider for LandlordInsurance advice queries– they can help.
  11. 11. ImageResourcesHTTP://WWW.FLICKR.COM/PHOTOS/UGGBOY/4406126399/SIZES/M/IN/PHOTOSTREAM/HTTP://WWW.FLICKR.COM/PHOTOS/ELL -R-BROWN/4325812085/SIZES/M/IN/PHOTOSTREAM /HTTP://COMMONS.WIKIMEDIA.ORG/WIKI/FILE:HOUSE_KEY.JPGHTTP://WWW.FLICKR.COM/PHOTOS/36041246@N00/3238266268/SIZES/M/IN/PHOTOSTREAM/HTTP://WWW.FLICKR.COM/PHOTOS/NIC/7409596/LIGHTBOX /HTTP://WWW.FLICKR.COM/PHOTOS/PLAYPENNIES/4791044169/SIZES/M/IN/PHOTOSTREAM/InformationResourceshttp://www.iinsure365.co.uk/buildings-insurance-quotehttps://www.gov.uk/private-renting/houses-in-multiple-occupationhttp://www.guardian.co.uk/money/2011/mar/15/landlords-cannabis-farms-avivahttp://www.propertywire.com/news/europe/uk-tenants-arrears-rentals-201304047631.html