For a new landlord, the area of landlord insurance can be a quite a puzzle. There are a number of questions that you want answered and truths that you want to be told. So what are the common misconceptions about landlord insurance?
Landlord insurance is a legal requirement – This is not the case. Unlike car insurance, it is not mandatory by law for you as a landlord to have landlord insurance. Nevertheless, it is still strongly advised to purchase a landlord insurance policy. Just like being a regular homeowner, there are a number of potential problems that could arise and having landlord insurance is the best way of preparing yourself for them.
My landlord insurance cover will last even when my property is empty – Not entirely true. Most insurance companies operate what is known as an unoccupancy clause. This will state how many consecutive days your property is permitted to be without tenant for before it is no longer viable for you to make a claim. The duration of time often changes between the insurance companies. Some offer 30 days others 90 days; it all depends on what has been specified during the negotiations of your policy.
Landlord contents insurance will cover both my tenant’s contents and my own – Landlord contents insurance will only cover the furnishings, appliances and other external items within the property that belong to the landlord. If you want to protect the belongings of your tenant then you will be required to purchase tenant contents insurance.
I don’t need public liability insurance – If you are investing in landlord insurance, then you should certainly include public liability insurance. In the event of an accident or injury occurring as a result of your property, you are held legally responsible. Having public liability insurance helps you through any damages or legal expenses that need to paid.
Knowing exactly what to expect from landlord insurance is the best way of ensuring you are getting a policy that is right for you.