What is Landlord Insurance: Do I Really Need Landlord Insurance?


Landlord Insurance: What Does It Cover & Why Do You Need It?
Landlord Insurance

Making the decision to rent out your property is no small feat. You not only have to make sure you have the right insurance to cover you, but you also have to ensure everything, and you have to make sure that you have absolutely no personal valuables stored in the property.

If you’re a property owner, deciding to let out your property is a huge step. You’ll need to make sure you don’t have any valuables stored in the property, ensure absolutely everything and make sure you have the best and most suitable landlord insurance to cover you.

It can seem daunting to explore landlord insurance and you may be tempted to leave it out but it is of vital importance that you do your due diligence and find the right landlord insurance for you before you rent out your property to anyone.

What is Landlord Insurance?

Landlord’s insurance is an essential and specialist cover for a property being let out. Most policies will cover things like water damage, loss of rent, storm damage, claims of injury within the property, contents cover and more.

Do I Really Need Landlord Insurance?

There is no requirement in law for you to have landlord insurance but most mortgages will require to you have landlord insurance before even going through the first steps of letting your property.

Make sure you thoroughly check your mortgage agreement for the specific stipulations on renting and landlord’s insurance – otherwise you may accidentally break the terms of your contract.

So yes, landlord insurance is essential, and it will also give you peace of mind, knowing that your property is protected even when it’s vacant between lets.

What does it cover?

Landlord buildings insurance usually offers buildings cover up to a certain amount (the sum insured) to insure the structure of the building, plus any fittings and fixtures in case they are damaged in a storm, flood, fire or an accident.

Your landlord insurance will usually cover up to or more than the sum it is insured for to deal with things like structural problems, or any damage. However, landlord insurance policies can differ significantly, so it’s important for you to learn exactly what your policy details.

Most policies will cover the below

  • Malicious Damage – This will cover you for any purposeful damage caused to your property or building I.e. vandalism of the walls, smashed windows, broken furniture etc. If you claim for malicious damage, you will likely need to have filed a criminal case with the police and will have to have a case number to share with your insurer.
  • Contents – Many landlords choose to furnish their rental properties and of course, sometimes the contents of a property may incur damage. Contents cover will help you repair or replace anything within the home (i.e. furniture, white goods etc). Even if your property is let out unfurnished, you should make sure that any white goods, curtains, carpets etc are covered in your policy.
  • Landlord Liabilities – if a tenant sustains an injury in your property due to any unsafe fixtures such as broken windows, loose floor-boards, dodgy wiring etc, then you need to be sure that you are covered in they decide to sue you for damages. These types of claims can become extremely expensive and time consuming, so it’s best to make sure you are protected.

  • Loss of Rent – If your property becomes uninhabitable due to fire, flood or storm damage this will cover you for loss of rent money if your tenants need to move out during repairs. Make sure that you check the maximum about of loss of rent pay out so that it covers the full amount of your monthly mortgage payment.  

  • Vacant properties – If you are renting out your property to students you might find that there are periods of time like summer and Christmas where your property is frequently vacant for a limited time. The right landlord insurance policy will cover you if your property is left without tenants for 90 days or 120 days if you’re renting solely to students.

There are several other types of cover that landlord insurers will offer that are also optional. Be sure to read your policy thoroughly to ensure that you have cover that suits your needs and you aren’t caught out my anything unexpected.

Where do I start?

The large amount of information can be a bit overwhelming, but don’t worry! ZFA is here for you to answer any of your questions and help you make the right decision. There are also multiple online resources like Compare the Market or Money Supermarket to review insurance policies and providers to help you find the right one for you.

Need advice or looking to let out your property and Landlord Guaranteed Rent? Contact us today  info@zfagroup.com – 020 8514 3333 and we’ll take care of everything, so you can get on with the important stuff.

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