A standard home insurance policy is usually not enough once you let a property. Landlord insurance is designed for the risks that come with having tenants.
What landlord insurance can cover
- Buildings: damage to the structure from fire, flood, storm and similar risks.
- Contents: furniture, appliances and fittings that you provide. Your tenants’ own belongings are not covered, so they should arrange their own insurance.
- Liability: claims if a tenant or visitor is injured or their property is damaged because of something you are responsible for.
- Loss of rent: rent you cannot collect while the property is unfit to live in after an insured event.
- Rent guarantee and legal expenses: optional cover for unpaid rent and the legal costs of recovering possession.
- Accidental damage and emergency repairs: often available as add-ons.
Tell your insurer you are letting
If you do not tell your insurer that the property is let, a claim can be refused. Tell them the type of tenants you plan to have, because some policies exclude certain tenancies or place limits on them.
Check the small print
Look closely at:
- the excess, which is the amount you pay on each claim
- exclusions, such as when the property is empty for a number of days
- conditions, such as requiring working smoke alarms or regular inspections
- the sum insured, which should cover the full cost of rebuilding
Your mortgage lender
If you have a buy-to-let mortgage, your lender will have its own insurance requirements and may ask for proof. Make sure your policy meets them.
Leasehold properties
If you are a leaseholder, the freeholder usually insures the building. You will still need contents and liability cover, and rent protection if you want it.
Do you need it?
Buildings cover is essential, and liability cover is strongly advisable. Rent guarantee and legal expenses are optional, and are worth considering if a missed rent payment would cause you real difficulty.
If we manage your property, we can help you make sure your cover is in place and up to date. Call us on 020 8553 3036.
This article is general information and not insurance or financial advice. Please read your policy documents carefully and speak to an insurance adviser.
