Landlords Home Insurance

Landlords home insurance

If you are a landlord then here are some key facts and myths that you should be aware of when thinking about landlords home insurance to protect your property and livelihood.

Myth - Ordinary buildings and contents insurance can be used. This form of insurance is only designed for owner-occupiers. It won’t cover any renting situation even if it is only a very short-term let during a holiday. It would become immediately invalid the moment you rented out your property.

True - Landlords have more property and related risks than an owner-occupier. As a landlord you will by definition have additional risks that arise from having tenants in your home or in your commercial property. These may include theft/breakage of contents, malicious damage, vandalism when empty or tenants who vanish overnight leaving large rent arrears. That’s why you may need specialist insurance to deal with these issues and cover your risks.

Myth - Landlords insurance is exceptionally complicated and expensive. If you contact a specialist provider of landlords home insurance you should find that they would use their expertise to make the assessment of your needs quick and easy. You may also be surprised at how affordable many forms of such insurance may be.

True - As a landlord you may be liable for claims from complete strangers. If third parties are visiting your tenants or on the premises of a commercial property you have rented (such as shoppers) as a landlord you may be legally liable for accidents they have. Court awards here can be very large and if your insurance doesn’t cover these risks you may find yourself in serious financial and possibly legal trouble. This is another reason for ensuring you have appropriate insurance in place.

Myth - Landlords can’t get contents cover for rented property or property that’s empty. There are a wide variety of specialist insurance products for landlords available from the specialist providers. These situations can be covered.

True - Tenants can be asked to provide their own insurance. Although many may do so and honourably accept claims if they accidentally damage your property, many others may not be so flexible. It may be risky to rely solely on the insurance a tenant tells you they have.

Myth - In the event of a claim, insurance companies can’t tell if a property is being rented out or not. Insurance companies can fairly easily find out such things. If you make a claim under a false declaration you could have the claim disqualified and you could find all future insurance difficult or impossible to obtain. You may also be subject to criminal prosecution for fraud.

Hopefully the above sample has given you an indication of how important it is to get this insurance ‘right’. If you’re looking for landlords home insurance it may be a good idea to contact that specialist provider as soon as possible.