Do I need Landlord Insurance?
Do you own a property that you let to somebody else? If the answer is ‘yes’ then you probably need landlords' insurance .
It’s really important for anyone renting out a property to remember that they need insurance that covers them for the ups and downs of the rental market.With the added risks associated with tenants and periods where the property may be empty a rented house or flat needs specific cover that goes beyond regular household insurance.
Take a fire or flood for example, these can be terrible enough as a homeowner and cause considerable stress and inconvenience. But as a landlord you need not only to think about repairs but also rehoming your tenants. You could also face a long stretch with no rental income while the house is put straight. It’s these kind of issues that make Landlord Insurance a must.
What does landlord insurance cover?
As a landlord your property is your most valuable asset. Making sure you have the right landlord insurance to cover your business is essential.
As well as the buildings cover you’d expect with normal house insurance your landlord insurance offers cover for the specific risks landlords face, like covering loss of rent and accommodation costs for your tenants if your property is damaged.
Having the right cover prepares you for the ups and downs of your buy-to-let business. Because every landlord’s need will be different, you are able to tailor your landlord insurance policy by choosing optional elements that you can add to suit your situation.
The elements that go into your landlord insurance cover
For starters with NatWest you will have access to a free 24/7 legal helpline so you can always get advice on legal issues. The other features of your landlord insurance are:
Buildings insurance cover
The underpinning element of any landlord insurance policy is insurance for the building itself. New-for-old contents insurance is available if you rent out a leasehold property.
Landlord contents insurance
You will need to include contents cover if you are renting out a furnished property. We include a new-for-old policy to replace any furniture that is damaged by your tenants. If you are a landlord of a leasehold property where the building is insured by the freeholder there is ‘contents only’ cover that would suit your situation.
Public Liability cover
Public liability cover protects you against any claims made against you should someone injure themselves on your property. Even if you are found not to be at fault you could face large legal fees so this element of your landlord insurance is very important for your peace of mind. You can also choose to extend the cover from £2m to £10m worth of cover.
Boiler breakdown cover
Boiler breakdown is the nightmare scenario for tenant and landlord alike. When a boiler problem crops up it needs sorting straight away and if it needs replacing the bill can be eye-watering. So boiler breakdown cover is essential for a landlord to know that a problem can be sorted immediately.
Re-housing your tenants
The primary function of your buy-to-let business is to provide a home for your tenants. If you are unlucky enough to suffer a flood or fire at your property your tenants will find themselves homeless so included in your landlord cover is a provision that provides for re-housing your tenants (subject to policy limits) to help you and your tenants get through what can be an incredibly stressful time.
Optional extras to your Landlord Insurance policy
The standard elements of your policy cover your basic needs as a landlord but you can choose to add elements to extend your cover.
Accidental Damage Cover
We all know accidents happen so you can choose to add accidental damage cover to your buildings and/or contents insurance.
Loss of rent cover
Losing your rental income can cause real problems so you can choose to take out this extra cover that will pay for your loss of rent if your property becomes uninhabitable following an insured event like a fire or flood.
Malicious damage and theft by tenant cover
These are two options you could add to your policy. Vandalism can happen anywhere and the costs of clearing up can be covered as a specific add on to your policy. Theft from a tenant cover may be something you wish to add if there are things in the property of value.
Along with flood or fire damage subsidence is one of the biggest threats to the structure of your property. This obviously depends on the nature and location of your property but for some this may be an essential addition to your policy.
When you need to discuss your landlord insurance give our experts a call and they’ll make sure you get the landlord insurance cover you need.