Landlord insurance – a guide

Before any property is let to tenants, a landlord’s priority is ensuring the the property is protected and covered by a landlord insurance policy.

Landlord insurance policies are made up of the following components:

  • Landlords building insurance – This insures the structure of the property, so that in the eventuality that the building is damaged or destroyed, the insurance will cover for repairs, or rebuild if necessary. Ensure that the information that you give regarding your rebuild value is correct, not just the amount that you paid for the property.
  • Landlords content insurance – The level of cover you need largely depends on whether the property is furnished or not. Contents insurance may only be required for white goods, carpets, and curtains/blinds if it is unfurnished, however a furnished property will require a higher level, including furniture, and electrical goods. Contents insurance can also vary based on the location, and the type of tenant.
  • Landlords liability insurance – This element of the cover is for any instance where an individual is injured, or, in the worst case scenario, the death of an individual, on your property. Depending again on the type of tenant you are housing, the minimum level of landlord liability insurance required may be dictated by the local authority, or in the case of students, the local university.

There are additional types of cover that you may also wish to purchase, such as employers liability insurance, rent guarantee insurance, legal expenses insurance, cover for unoccupied properties and alternative accommodation and loss of rent cover. When looking for the cheapest landlord insurance, be sure to know exactly what you are looking for, and have all of the relevant information to allow you to find the best cover for you and your property. Remember that most insurance policies have an excess amount; increasing the level of excess can reduce your premiums, but will mean you will have a higher level to pay in the event of any claims. And of course, always ensure that you fully understand your policy, so that you know exactly what is included in the cover.