Your Guide To Landlord Insurance
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Your Guide To Landlord Insurance

MakeUrMove doesn't sell landlords insurance. But we recognise its value and urge all private landlords to take out a robust policy.

 



Why you need landlord insurance

 

There's no legal requirement for you to have landlord insurance. But to not have it is reckless in the extreme. Landlord insurance will protect you against the unforeseen and helps safeguard the large investment you made in your property business.

 

But like all types of insurance, you don't appreciate its worth until you have to make a claim. Until then it's just another expense. But it is an essential one.

 

If the worst happens and your property is badly damaged by storm or accident, your landlord insurance will enable you to absorb the financial blow. Though it needn’t be as drastic as that.

 

What if the boiler packs in? Do you have the resources to replace it? Or what if there's a break in and that big screen TV and new cooker you installed is taken? They'll need replacing and your insurance can cover the cost. You can also insure yourself against unpaid rent. And rent protection is one of the biggest reasons why you should take out landlord insurance.

 

How to choose landlord insurance

 

There are many insurance companies out there. And a lot of different policies on offer. So how do you choose which is best for you? You can use comparison sites, go straight to the provider or use a broker.

 

Unless you know exactly what you're looking for a broker may be the best option. An independent broker will know the market and be able to find you the best deal.

 

The different types of landlord insurance

 

You can find policies to cover just about anything. But most companies will offer two kinds of landlord insurance.

 

Contents only insurance

 

Protect your fittings and furnishings with contents insurance. It covers appliances, furniture and fittings. Your policy will cover accidental damage to carpets and other floor coverings. Some will also include cover to temporarily re-house your tenant should your property become uninhabitable. After a flood for example. Finally, the policy may also cover the cost of replacing locks in the event of burglary or loss of keys.

 

It's important to note that any landlord contents insurance policy only applies to your own property. But it doesn't cover any of your tenant's possessions. If your tenant wants to ensure their own possessions, they need to take out their own policy.

 

 

Buildings insurance

 

This type of policy is an absolute necessity for all landlords. It provides protection against structural damage to your property. This could be due to storm or fire damage. The policy will cover damage to walls and windows for example.

 

A building insurance policy will also cover against flood or water damage. Some policies will also cover the cost of boiler repairs. And, like some contents policies, will also pay the cost of re-housing the tenant if necessary.

 

If purchasing a buildings policy many insurers will offer a contents policy at a reduced cost. Or even bundle both types of policy together.

 

Rent protection

 

It's advisable to bolt rent protection cover onto your landlord insurance policy. Sometimes referred to as rent guarantee insurance this type of policy protects you should your tenant be unable to pay the rent.  The cover can be worth thousands of pounds. If your tenant gets into arrears you won't lose out financially. This is why rent protection insurance is highly recommended.  Some policies will also pay the cost of evicting the tenant so provides even more value.

 

Insurance offers the best landlord protection there is. Yes, you have to pay monthly premiums. And hopefully, you'll never have to claim on your policy. But don't view the premiums as 'dead money'. Instead, look on your insurance policy as protecting your investment. And the peace of mind landlord insurance provides is worth far more than the cost of the premiums.

 

Private landlords can find tenants fast by listing their property with MakeUrMove the online letting platform bringing landlords and tenants together.


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