Landlord Tenant Insurance

Landlord tenant insurance

While the majority of tenancies pass off relatively smoothly, there's always the chance you're going to be left short of rent money or, worse still, with big repair bills to pay. It can be easy to assume you will be able to get by with only a buildings policy, but for a few extra pounds a more effective deal can even protect you against the chance of being left short changed by a tenant who makes off and leaves a ruined carpet which could cost thousands of pounds to replace. Landlord tenant insurance can be included as part of a general if buy to let deal, and can if safeguard your profits by even ensuring that you get a replacement rent if a tenant fails to pay up.

This might seem far-fetched, but it is a straightforward financial aspect of many rental policies, and can be particularly useful for commercial property owners. Tenants failing to pay is not the only way in which you can lose rent. If you suffered a fire or flood at a property, or even a more unusual event, there is a chance that the commercial or residential premises will have to be off the market for a period of time while repairs are made and investigations carried out. This of course means rent will not be paid, and can also leave a big hole in your balance, depending on the property.

Rental cover

Landlord tenant insurance can also include rent cover if the worst happens and you have to have repairmen in for a long period, although a maximum payout limit will apply. So for example an insurance company might agree to give you replacement rent for up to 12 months maximum. Alternatively they may agree to insure a proportion of your income from the rent on one property in particular. For example they may only pay rent to a set amount per month, perhaps up to £5,000.

Residential landlords will know that accidents do happen and tenants can occasionally cause damage to a property, accidentally or maliciously as well. This may be of interest to people who have spent time furnishing a home so that it is easier to rent. One smashed bottle of wine can wreck a carpet, costing thousands, which does not belong to the tenant, but which you have spent considerable money on. Some policies will give you a pay out towards the cost of such accidents, and some will even replace any furniture which is wrecked by malicious damage caused by a tenant.

Landlord tenant insurance can help prevent you ending up out of pocket if a tenant makes off without paying rent, and although it can't prevent the stress of what would happen if your commercial or residential premises were struck by a flood or fire, it can fill some of the financial hole which could be left by such circumstances. This means you don't need to worry about an unforeseen event hitting your profits and affecting your wider income.