LANDLORD INSURANCE

Whether you rent properties out in the private sector or rent out a room in your house to a lodger, ensuring you have landlord insurance in place is an essential part of the owning and renting process.

Whilst landlord insurance is not a legal requirement, having some in place could save you a lot of money in the future, particularly if you experience difficulties with tenants that could lead to losses due to rent arrears or even damage to your property as a result of negligence.

Do I need a licence to be a landlord?

If you are just renting out a room to a lodger you won’t specifically need a licence to become a landlord, but if you own a residential property which houses three or more tenants you need what is known as a House in Multiple Occupation (HMO) Property Licence. This is available from your local council and applies if the following apply:

• The property is more than three storeys high
• It is rented to five or more people who form more than one household
• The tenants share bathroom, kitchen and toilet facilities

Landlord licences are valid for a maximum of 5 years, extensions can be applied for depending on your local council and most importantly of all – you need a HMO for each property you own.

What features can I get on a landlords insurance policy?

When it comes to landlord insurance, there are a number of features that may come as part of a policy; these essentially help cover your property against the demands of tenants and any potential damage:

• Buildings Cover

  Much like a home insurance policy, buildings cover will help to protect your property from damage, whether malicious or accidental. Buildings cover essentially covers the bricks and mortar aspect of your home, including walls, floors and ceilings

  Tenants are usually advised to make sure they have some form of contents insurance to cover their possessions, but if you have partly furnished your home you may wish to take out some cover against your furniture or kitchen appliances, this should be discussed with your residential property broker.

• Property Owner’s Liability Insurance

  Property Owner’s Liability cover helps to cover and damages awarded to tenants or visitors who may be injured as a result of an incident at your property. This can range from stairs collapsing and causing injury to a tenant, roof tiles falling and striking passers by and even damage to tenants possessions such as electronic equipment as a result of damp or burst pipes.

• Loss of Rent / Rent Guarantee

  As a landlord, your rent is your income, and there may be times when your tenants need to move out – including house renovations, essential maintenance or if your tenants need to move out temporarily. Loss of rent cover offers a degree of protection by ensuring that you are covered during these times and don’t end up out of pocket as a result.

• Alternative Accommodation Cover

  When it comes to the weather, anything can happen suddenly as a result of adverse conditions, so if your property is damaged or rendered uninhabitable by flood water or storm damage, alternative accommodation cover can help ensure that your tenants at least have a roof over their head while you make repairs.

  This feature can help you to recoup the costs of putting your tenants up somewhere else while you sort out bringing the house back to a habitable state.

What Can Affect My Policy Price?

The price of your landlord insurance premium can also vary depending on certain factors:

• Type of property – properties differ in size from self-contained one-bedroom flats to larger detached houses, and the larger the property the more expensive it will be to insure.
• Area – where you live could have a difference to the price of your policy. Locations in the UK differ when it comes to levels of crime, and renting houses in such areas is going to be seen as higher risk by a broker, and as such your premium will be more expensive.
• Type of let – depending on the type of tenant you want to attract to your property can make a difference to your premium. Professional lets are often the most desirable, with tenants being at a place of work during the day and back at home in the evenings. Properties that are occupied throughout the day are usually cheaper to insure as they are perceived as being at less risk of being burgled.
  Student lets are usually more expensive due to an increase in the risk of accidental damage and property damage.
• • No Claims Bonus – by building up some no claims bonus as a landlord, ensuring that your tenants keep the property in good condition and not have to claim throughout the year, you can help to save money on your future house and landlord insurance premiums.

There are also a number of organisations, including the National Landlords Association, who offer advice and support to landlords on a range of subjects, and membership to such organisations may lead to cheaper premiums in future.

Are you a landlord? Looking for a better deal on your current landlord insurance? Fill in a few details here at Quotiva and let us search our network of top UK-based brokers to find a deal to suit you.