Landlord insurance is a specific insurance policy that covers property owners against financial loss connected with the property or properties they rent out.
As a landlord leasing out a property, it is essential that you have the right amount and the right kind of coverage for your individual circumstances. Depending on those specific circumstances and your own unique situation, your landlord insurance policies may protect you against any or all of the following risks: damage to your property or properties, loss of rent from your tenants, injury or damage sustained by third parties on your property (public liability), injury, loss or illness sustained by employees whilst interacting with your business (employers’ liability) and contents insurance.
Why is building insurance important to landlords?
Although not always strictly required by law, landlord insurance is invaluable if you do happen to rent out properties. Even if your tenants arrange contents insurance to cover their own possessions, you still need the peace of mind that comes from knowing your building — including its floors, walls and roof, as well as all of its fixtures and fittings — is insured against damage. If for example, your property is damaged by a burst pipe, vandalism or a fire, the right building insurance cover could ultimately save you tens of thousands of pounds. Landlord insurance can provide further protection from subsidence damage, for example, as well as so-called acts of god such as floods and storms.
Furthermore, if the property you rent out is furnished, you can also insure against damage caused to that furniture and any other separate property contained in the building.
It is important to check your cover, so you know what is protected. Some landlord insurance policies will just cover the building itself, where others will also cover contents. Other types of available cover protect you against other eventualities. These include:
- Landlord liability insurance — this covers you against claims arising from damage or injury suffered by tenants or other third parties as a result of some defect in your property.
- Accidental damage insurance — this can protect you against home mishaps, DIY accidents and some outdoor accidents, such as someone kicking a ball through one of your windows.
- Insurance against loss of rent — this protects you against loss of rent if your property becomes uninhabitable for some reason.
- Alternative accommodation insurance — this protects you if you are obliged to provide alternative accommodation for your tenants if your property becomes uninhabitable due to another insured event.
At Thompson Insurance Brokers, we have a team of landlord insurance experts who can help you find the policies that are right for you and your own unique circumstances. Whether it’s a standard landlord insurance policy you require, or specific policies such as tenant default insurance, unoccupied property insurance, landlord home emergency insurance or landlord legal expenses insurance, we can help you find the right policy at a very competitive price.