Landlords Insurance Policy

landlords insurance policy

Some people who have recently bought property and are wondering what to do with it may be confused about what the differences are between a landlords insurance policy and a typical home insurance deal. Because somebody as a landlord is using a home or commercial premises as an extra source of income, this needs to be protected. For example, the typical home insurance deal might not cover a property if it is unoccupied for a long time, or may be completely invalid if the owner suddenly starts to let it to tenants.

As an investment property, a home might have a different financial impact upon you if it is destroyed by fire, for example. In such circumstances a landlords insurance policy would pay for the damage no matter how extensive, depending on the policy, and may even cover the cost of any rent that you are missing out on by not having anyone living there during the work.

Deals can also help you if you fall into a dispute with tenants. For example, should they decide to stop paying rent and then not leave, a legal expenses element as part of your deal can pay back the costs you have run up fighting the court case to get them evicted.

Multiple cover

This throws up obvious questions, such as what if somebody has bought a number of properties, perhaps half a dozen or more? Thankfully there is often no need to buy an individual policy for each one, a company may offer somebody a deal which covers as many properties as they own, and can cover multiple properties under one deal and one premium.

As with traditional home insurance, a landlords insurance deal can apply to the building and so the contents itself. For example, many residential landlords choose to put some basic furnishings in a property and may include things like washing machines and fridges. Such things typically need to be covered by a contents deal, which might not have the upper limit of a traditional home deal, but which will often be quite flexible and normally be more than enough to cover what you would have inside the home.

A landlords insurance policy may come with free access to a helpline, depending on the deal, and will always involve a sum insured - the maximum amount the insurers are willing to pay out in the event of a claim. It is important to get this right, as it involves your own estimate- too low and you may get a cheaper premium but an inadequate pay out should the house be destroyed by a fire.