What is Landlords’ insurance?
Landlords’ insurance is an insurance policy that covers a property owner from financial losses connected with rental properties. The policy covers the building, with the option of insuring any contents that belong to the landlord that are inside. Landlords’ insurance is sometimes referred to as buy-to-let insurance or property owners insurance. Landlord insurance is separate from landlords’ emergency cover which can be insured on it’s own or as an addition to the landlords policy.
What type of buildings can be insured?
Landlords protection can cover the renting or leasing out of residential properties such as houses or flats or commercial properties such as warehouses, shops or offices.
What can be insured?
The policy will normally cover standard perils such as fire, smoke, lightening, explosion, earthquake, storm, flood, escape of water/oil, subsidence heave & landslip, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Optional coverage might include accidental damage, malicious damage by tenant, terrorism, legal protection, alternative accommodation costs, contents insurance, rent guarantee insurance and property owners liability, public liability and employers liability insurance.
Landlords’ insurance policies typically do not cover any personal property belonging to tenants, or otherwise protect the interest of tenants; although a liability policy protecting a landlord or property manager will be of benefit to tenants should they incur a loss for which the landlord is responsible.
For unoccupied buildings, cover may be restricted to FLEA (damage by fire, lightening, earthquake, explosion or aircraft) but additional perils/cover as shown above may be obtained from certain insurers, usually subject to the payment of an additional premium.
It is very important that you tell an insurer when a property is unoccupied and the reason for it’s unoccupancy, such as awaiting sale, renovation or new tenant being sought. The length of unoccupancy can also have an impact on the cover provided and whether cover will be provided at all by some insurers.
If you own land, such as a small holding or a recreational field, it is recommended that you have landowners liability insurance to protect you from claims from members of the public who may suffer injury whilst on the land or where there is a third party property damage claim such as a falling tree onto a house. Negligence has to be proven for a claim to be considered.