Is landlord insurance compulsory?
There’s no legal obligation for landlords to take out a specific and dedicated insurance policy, but having one in place is worthwhile when letting your property to tenants. And it’s worth noting that some lenders will make it a requirement of taking out a buy-to-let mortgage and a typical buildings insurance policy will probably decline a claim if it transpires the property is tenanted. So, in our opinion, it is always worthwhile taking out a Landlords Insurance policy to be on the safe side.
Types of landlord insurance
- Boiler insurance
Landlords are legally responsible for repair works and maintenance for heating, hot water, gas appliances, pipes, ventilation, wiring and sanitary fittings.
Therefore, it is important to ensure that you have all you need if a boiler were to go wrong. Boilers are expensive to replace, so it may be worthwhile considering boiler insurance.
- Landlords’ contents insurance
- Landlords’ liability insurance
- Legal expenses
- Home emergency cover
There are a lot of variables that can be included in insurance policies for landlords. Not all of them are relevant for every type of landlord, but finding a package to suit you and your circumstances can see you on the right track.
Why should you get full liability insurance?
Liability insurance protects you and your let property against claims made by tenants for personal injury or damage to their possessions in your property. By having this type of insurance in place, it means that you can save yourself from hefty bills as a result of damage, injury or accidents from tenants. As we say, there’s no specific regulation that means you must take out insurance policies on your let properties, but if your property is mortgaged, there may be stipulations in your mortgage for you to have the relevant insurance before taking on tenants.
It can help to retain a good relationship with your tenants as it will take away the responsibility as the landlord to stand the cost of any damage from your tenants as the insurance will cover it.
Landlord legal expenses
Loss of income expenses
If your property is damaged for a reason covered by your policy such as a fire or flooding, and you can’t rent out the home, your landlord insurance may cover you for lost rental income. Check the policy details to find out if this is an item which is covered on your insurance document.
Having a policy which covers you for accidental damage is essential as a landlord. Especially if the rental agreement is for a furnished property. It can help to save you, as a landlord, money, but it can also help to iron out any confusion with regards to who is responsible for what.
Emergency cover includes those unforeseen circumstances, where without appropriate insurance you may find yourself having to fork out hundreds on the spot. Eventualities which are included in this policy are the breakdown of the heating system, plumbing and drainage problems, damage or failure of external locks where access or security is a problem. It also covers if your only toilet is broken, loss of power, assistance to stop an emergency arising from roof damage, removal of hornets, wasps, rats and mice.
Want to find out more about landlord insurance or compare cover? Get in touch with our team today on 02476 437 600.