An Introduction To Landlords Insurance

Investing in a high quality landlords insurance policy is one way to militate against the risk of letting out your property to complete strangers. The cover can provide the homeowner with complete peace of mind and protection against legal costs.

Landlords insurance is simply a type of homeowner insurance but has been designed specifically for those owners who rent out their property. Policies will cover the buildings as standard, with additional options to add on contents insurance.

Contents insurance is often not applicable but may be suitable if the homeowner is letting the property out furnished or only with white goods. If the landlord has any personal belongings in the property, they should take out contents insurance to cover their items in the event that the tenants cause any damage.

Landlords insurance should also include liability for the property in the event that tenants or visitors are on the premises. If any person was to be injured whilst in the property and they believed it was your fault, they could try and sue you for negligence. You will need to have this protection in the event that the person is entitled to compensation and for other legal costs.

There a couple of ways that landlords can take out policies, they can either obtain general comprehensive coverage which will protect against a wide variety of incidents with some common exclusions, or they can seek a bespoke policy which covers damage and eventualities that are more likely.

By altering your policy to suit your personal needs, you could reduce the cost of your annual premium as you may not require as much cover. However, it is important that you do not remove sections of the policy which would prevent you making a successful claim in the future.

One of the most common exclusions in Landlords insurance is an “Act of God” which is some form of damage by a natural disaster such as an earthquake, flooding, lightening, or storm. More likely threats like theft and vandalism will probably be covered, but it is still important that you check. There will be additional cover options that can be added to the landlord insurance policy, these might include accidental damage, rent guarantee and acts of terrorism.

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