Why You Need It & What To Include

A GUIDE TO LANDLORD INSURANCE

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Landlord insurance or ‘buy-to-let’ insurance is something you need to look to purchase if you have a property that you rent out.

This can be commercial or residential.

It is what will cover you for unforeseen eventualities such as: Loss of rent Accidental or malicious

damage Public liability

WHAT IS LANDLORD INSURANCE?

Landlord Insurance = Protection for

Landlords

If you own a ‘buy-to-let’ property that you are renting out to tenants, then you should look to purchase Landlord insurance if you are said “Landlord.”

The Landlord - DEFINITELYThe ‘Freeholder’ is

responsible for insuring the building

‘Leaseholders’ will need to apply for Landlord insurance if they have the right-to-manage or share of ‘freehold’

WHO NEEDS LANDLORD INSURANCE?

If You Are A Landlord That Rents:• Flats• Houses• Large blocks• HMO’s (Houses in Multiple

Occupation)

• Commercial properties

Most Landlord insurance policies will cover you for the following:AircraftEarthquakeExplosionFireFloodLightningStormEscape of Water

WHAT DOES LANDLORD INSURANCE COVER?

Some insurers may not include all of these perils in your policy. Their

inclusion may depend on postcode checks and/or your property history.

ACCIDENTAL DAMAGE: Some insurers will include this within your

policy but many will make this an additional contingency. However, it is always best to cover yourself for this as everyone has accidents, especially if you are renting your property to families with children

MALICIOUS DAMAGE: If you can, it is always best to include

malicious damage cover in your policy (if it is not included in your standard policy) because unfortunately, Landlords can be subject to additional costs and repairs left intentionally by angry tenants. This includes the damage caused by Cannabis Farms

WHAT DOES LANDLORD INSURANCE COVER?

Insure for the unforeseeable!

You aren’t psychic.

PUBLIC LIABILITYAs a Landlord , you are responsible for the health and safety of all persons that visit your property:

Postmen/women Couriers Tradesmen (Plumbers,

Electricians etc…) Health Visitors Decorators

If a member of the public injures themselves due to a safety issue with your property, you will be held accountable and liable for compensation

WHAT DOES LANDLORD INSURANCE COVER?

Landlord Insurance will

cover legal fees for Public

Liability claims Some claims have reached

up to £1m

CONTENTS COVERI f you are renting out a furnished property to save you paying for storage, then you need to ensure contents cover is included in your Landlord Insurance. (Especial ly for theft)

Note: This does not include your tenants contents

This may include:

Washing machine Dishwasher Microwave Sofas Beds Tables Drawers Wardrobes

WHAT DOES LANDLORD INSURANCE COVER?

Contents are anything that does

not stick to the floor

LOSS OF RENTMany Landlord insurance

policies will protect you from loss of rent, covering the value of up to 20% should your property be inhabitable subject to a fi re or fl ood etc…

Some (but not many) insurers will off er up to 30% cover for loss of rent

As rent is either your source of income or what will be paying your mortgage broker, it is an important component to have protected

WHAT DOES LANDLORD INSURANCE COVER?

You may also want to consider investing in ‘Rent Guarantee

Insurance’ separately. ‘

In the first three months of 2013 the number of

tenants more than two months behind on their rent rose by 4.8%...’

The age of the propertyIf the property has been subject to any

rebuildsThe renewal premium for your current

policy provider (if you have one)The current state of the property eg:

Vacant/Not Vacant (If your property already has tenants you will need to know their occupational status for a quote)

If you have previously had insurance declined

WHAT YOU WILL NEED TO KNOW FOR A LANDLORD INSURANCE

QUOTE

Additional premiums and fees – Some insurers will add a premium to your policy for vacant properties. This premium will only usually be enforced if your property is vacant for 30-60 days

Be honest – If you do not answer the insurers questions honestly , or forget to update insurers on the current state of your property; your policy may become VOID

Read and understand – Read your policy. It is your responsibility to know your policy. If you don’t understand something, research it or ASK your insurer. They are there to advise you as much as they are there to insure you

LANDLORD INSURANCE ADVICE: WHAT TO LOOK OUT FOR

It is your responsibility to

know your policy!Speak to your policy

provider for Landlord Insurance advice

queries – they can help.

Image Resources

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Information Resources

http://www.iinsure365.co.uk/buildings-insurance-quote

https://www.gov.uk/private-renting/houses-in-multiple-occupation

http://www.guardian.co.uk/money/2011/mar/15/landlords-cannabis-farms-aviva

http://www.propertywire.com/news/europe/uk-tenants-arrears-rentals-201304047631.html