When the time comes to buy insurance for your rented properties, you have to think about more than just the building. Unlike normal home insurance, landlords must consider health and safety, and as if looking after the property isn?t enough, there are also people to protect ? both yourself and your tenants. All landlords need to protect themselves against possible legal action following an accident, injury or even fatality on their property.
A good Landlords Insurance company will protect all the necessary people and properties with the following cover:
If you let your property in a furnished state, you need to be sure that you can replace items, should they be lost, stolen or broken.
A good insurer will cover contents on a new for old basis, with cover ranging from £5000 to £50000 and including the furniture and carpets.
However, the belongings of your tenants are unlikely to be included in this cover.
The Association of Residential Lettings Agents (ARLA) say that claims for personal injury have risen by 85% since last year. With compensation of over £100,000 becoming the norm, decent liability cover is a key element of landlords insurance which landlords must have.
If buildings insurance is included, good liability cover provides cover of between £2m and £5m.
Another key element to check is that your buildings insurance covers the cost of fully rebuilding your property ? especially since ARLA estimates that up to 40% of properties are under insured.
The level of cover you need will depend entirely on the potential costs of structural repairs on your property.
Accidental damage insurance
You can also be covered in case your tenants (or other parties) cause accidental harm to your property. After all, accidents happen.
Loss of rent insurance
Finally, it?s all very well being covered for your building and everything in it, but if you do need to carry out major repairs, the tenants won?t be able to live there, and that means no rent. However, all is not lost! You can be covered for up to 20% of the buildings sum insured so you can rest assured that you won?t lose that income.
A decent insurer will also provide different accommodation for your tenants while you make your property habitable.