Protect your investments
Protect your investments
Here’s a detailed overview of what you need to know about the processes involved.
What Are The Legal Requirements Regarding Landlord Insurance?
The first task facing any landlord is to know that they are operating in a legally sound manner. Landlord insurance isn’t a legal obligation in itself, but the property will need to be protected with buildings insurance before getting a mortgage.
Given that the traditional homeowners\home insurance policies are invalid, landlord insurance is essential. Aside from the financial elements, this safety net should provide peace of mind.p.
What Types Of Landlord Insurance Packages Are Available?
There are several types of landlord insurance that you may wish to include in the overall insurance package for your investment properties. The most important ones are:
Landlords’ building insurance: to protect the property by covering the cost of repairing or rebuilding it in the event of damage caused by fires, natural disasters, or flooding.
Landlords’ contents insurance: to protect the furniture and furnishings against tenant damage, theft, and other problems. This is an optional extra.
Property owners’ liability insurance: to protect you against claims made by tenants regarding injuries sustained in the rental property, perhaps from trips and falls.
Tenant default cover: to protect the mortgage payments should a tenant decide to leave and default on their payments. It can cover up to £2,500 per month for a period of eight months.
Legal expenses insurance: to protect you by covering the incurred legal expenses in relation to the rental property, such as chasing tenants for damages. There is no one right or wrong solution as to which items should be added, but you should always read the terms and understand the maximum payouts.
Are All Rental Properties The Same From Insurance Perspectives?
While the size and type of property (flat, bungalow, or house) will only impact the coverage levels, it’s important to remember that the type of tenants you choose can change the situation. Letting the insurance companies know whether it’s occupied by a working family, students, or other people is vital.
On a separate note, HMOs (Houses of Multiple Occupancy) and multi-units produce unique situations. In these cases, you need to follow the appropriate pathways.
How Can I Get The Best Landlords Insurance Package?
Given that the whole purpose of your landlord activities are to generate profits, finding the best value for money (without sacrificing the necessary level of protection) is crucial for success. The cost of your premium will be influenced by many factors such as building type, location, size, and the tenants themselves.
Whether taking the DIY approach or using an expert, always run comparisons to find various quotes. Before making a commitment, be sure to read the full details to check you aren’t paying for unnecessary services. It can go a long way to maximising your returns.
If you are a landlord and looking to get Landlord Insurance to cover you and your properties, please do get in touch with our team of mortgage advisers and we will be able to talk you through what is available on a case by case basis.
These articles are for information only and no advice should be conferred from the content within. Please seek independent financial advice prior to taking any action.
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