Landlords Buildings and Contents Insurance

Landlords buildings and contents insurance

Owning property to rent out for a profit can be a very sound investment, but it also carries with it certain risks. In certain circumstances the property is tied to your livelihood and losing it can be disastrous. This is why landlords buildings and contents insurance can be crucial in the event there is something like a flood or fire which means the premises are uninhabitable for a period.

Property which is rented can sometimes also spend a long period of time empty, and this is one of the main areas in which a standard home insurance policy could be found lacking. A landlords buildings and contents insurance policy will typically protect a property for a much longer period when it is left empty, compared to a comparatively restrictive period of about 30 days for a traditional policy.

It is also important to note that in the eyes of an insurer, a traditional non commercial home insurance policy would not provide valid cover for a rented property. This is because your property – or portfolio of properties – are being run as a business and therefore, you need the right type of cover.

Deals do not always have to cover contents insurance on top of the buildings cover. This may be because there is a very limited level of contents in a house or houses which you're looking to rent, and so buildings insurance may be only what is needed. Alternatively you can get another level of contents cover, which will protect a relatively low total value of goods in the house, or simply carpets and a cooker, for example.

It is normal to have a range of other options on a policy, including protection if a tenant does not pay rent, or including an element of public liability insurance into the policy, useful if you ever face a legal claim from a tenant who is injured on the property.

It is also possible to get landlords buildings and contents insurance which will protect listed buildings or those which are at particular risk of flooding or other natural risks.

When assessing your policy, it can also be important to get the sum insured right, which is essentially the maximum amount of money the insurance company will pay up in the event of the total destruction of the property. If this is too low on your policy, you could be left to meet any shortfall in the event the worst does happen.

Landlords buildings and contents insurance is therefore typically much more detailed than a run of the mill domestic insurance deal. It provides much greater protection and can also be affordable. Normally it's also possible to arrange cover for a whole number of different properties or even a block of flats.