Unraveling landlord insurance

Landlord insurance is a mix of different covers intended to safeguard landlords. It’s an essential safety net for anyone who rents out their property. Even the most responsible tenants can encounter issues, and that’s where landlord insurance provides protection. This insurance allows you to opt for additional coverage, such as loss of rental income, which is handy if your property becomes uninhabitable due to damage.

A standard package will typically offer reliable protection for your residential property investment. Ideally, you want the flexibility to customise your policy with a range of optional extras to ensure you obtain the right landlord insurance.

WHAT’S COVERED UNDER LANDLORD INSURANCE?

A comprehensive landlord insurance policy should always incorporate building insurance. This component covers any damage to the property’s structure and the cost of necessary repairs. Contents cover is another crucial aspect of any insurance policy, safeguarding you against the expense of replacing fixtures or fittings damaged during the tenancy. Landlord insurance can also offer liability protection, which comes into play if a visitor to the property gets injured.

IS LANDLORD INSURANCE NECESSARY?

For those renting out their property, home insurance may not suffice. Although landlord insurance isn’t a legal requirement, it covers risks associated with rented properties that aren’t included in a basic home insurance policy. Without the right coverage, unforeseen events could result in significant financial losses.

UNDERSTANDING THE COSTS OF LANDLORD INSURANCE

The cost of landlord insurance varies based on several factors, including whether you’re insuring a house or a flat and whether or not it’s furnished. If your tenants are students, you might face higher charges, or some landlord policies might not cover you at all, unlike if you rent to professional individuals or families. Opting for a customisable policy with various optional extras may help you save money in the long run.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.

*** The information in this article is purely informative. Landlord insurance is available in the market, but we do not offer this service in-house at Charles Cameron & Associates.