Although residential landlords insurance is not a legal requirement for landlords to hold, it is a good idea as it can protect the property owner from a whole host of different risks and threats. There are probably hundreds of policies available from a range of insurers but finding the one to suit you can be a little harder.
It can often be assumed that landlords have invested time and money into the property in order to make it both suitable and attractive for the tenants. Obtaining residential landlords insurance is essential to protecting this investment as unfortunately not all tenants will have the same respect for the property.
Residential landlords insurance is usually made up from three separate types of cover:
Buildings insurance
Landlords buildings insurance is designed to protect the actual bricks and mortar of the building, and is in place to cover the cost of a rebuild should something disastrous happen to the property. The disasters you are protected against will differ from policy to policy so it will be worthwhile checking this – particularly if you live in an area known for high winds or flooding.
Contents insurance
Not all landlords will decide to add contents insurance onto their residential landlords insurance but it is generally a good idea. This policy covers the items you have inside the property, whilst most applicable for people letting out the property furnished or part-furnished, it can also protect staple items such as kitchen work surfaces and carpets.
Liability insurance
It is essential that you protect yourself as a landlord against personal injury claims. If one of your tenants or anyone else visiting the property is injured as a result of your negligence you could be facing a claim. Personal injury claims can result in thousands of pounds of compensation, which you would be personally liable to pay, unless you were covered by residential landlords insurance.
These are the most basic types of cover to be included in a policy but there are extras that can be added of if you want further protection. These extras could include legal expenses cover and rent guarantee insurance.