One of the reasons that landlords need insurance is that during the past year, one in three buy-to-let owners have had a rental property damaged by tenants, which concludes that around 400,000 landlords had to spend time and money on damage that amounted to more than average wear and tear of property and contents, according to the NLA (National Landlords Association). 120,000 of these made a claim against their landlord insurance, leaving a huge number of landlords footing the bill themselves.
According to this research, rented homes in the North East were most likely to be damaged by tenants (46%), and that landlords in the South East were the least likely to clear up after tenants, damages reported on rental properties amounted to only a fifth in this area.
A simple home insurance policy does not provide the necessary cover for landlords, with a number of landlords unaware of this. Landlords are being urged to ensure they have the correct type of policy in place, to prevent any major payouts for them in the event of damage by tenants. If a landlord only has a standard home insurance policy on their rental property, and a claim is made, then the insurer is likely to cancel the policy, and refuse to settle any claims on the insurance. It is of great importance for landlords to go through their insurance policy to make sure that the correct cover is in place, including landlord liability insurance. This will protect the landlord against any injuries, or deaths of tenants or visitors to the property. Be sure to find competitive quotes that cover all of your needs as a landlord, including any add-ons that you wish to include, such as loss of rent insurance. Landlords need insurance that will cover any eventuality, not just simple home insurance.