LANDLORD
INSURANCE
Landlords insurance is becoming a must for people that let their spare room or are building a property portfolio. If you need to compare quotes, why not use Quotiva's hassle-free comparison service.
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.
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:
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.
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:
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 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.
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.
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.
The price of your landlord insurance premium can also vary depending on certain factors:
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.
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