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Making sense of landlord insurance

Making sense of Landlord insuranceWhat are your risks as a landlord?

Investing in a rental property is not without risk. YOUR Insurance highlights a number of key risks landlords face, and how to avoid them:

Loss of rental income – As a landlord, you are at risk from loss of rental due to tenants not paying rent or rental periods not overlapping. The need for repairs could also result in your property becoming uninhabitable for a short period of time.

Non-paying tenants – Even though you may have run background and credit checks before your tenant moved in, people’s circumstances can change unexpectedly and tenants may find themselves in financial difficulty. As a result they may be late in paying the rent, or not pay it at all.

Damage to your property – Tenants do not feel the same way about your property as you do. Accidental breakages, damage and wear and tear on your property are par for the course. However, they still cost money to repair and as the landlord, it is up to you to foot the bill.

How landlord insurance can protect you

With the right landlord’s insurance you can rest assured that you are covered financially if your property is damaged or your tenants stop paying rent. The different types of buildings insurance for landlords include:

  • Buildings insurance - Buildings insurance for landlords covers the cost of rebuilding or repairing the property in the event of a disaster, e.g. fire, storm, flood or subsidence.
  • Contents insurance - Contents insurance protects the contents of your property. It covers items such as carpets, repairs to walls, stairs, cupboards and other specified items on the premises. If you are renting a furnished property, it can also cover damage to sofas, chairs, beds and other furniture pieces.
  • Accidental damage cover - Accidents do happen and this covers you for unintentional, one-off incidents that lead to damage to your property or its contents.
  • Property owner’s liability - This offers cover in the event a member of the public sues you as a direct result of your property causing them injury. Examples include a roof tile falling off your roof and injuring a passer-by, or your tenant being injured by slipping on a loose tile.
  • Loss of rent cover - If your property cannot be lived in due to insured damage, loss of rent protection will help you cover the rent you are unable to receive from tenants.
Benefits of insurance for landlords Buildings insurance for landlords enables you to protect your building and contents from unforeseeable events and circumstances. Insurance for landlords also provides peace of mind that if and when damage occurs, your insurance will cover the repairs to your property and loss of income. Contact us for more information on our landlord insurance policies, or request a free quote online.