landlord insurance explained

Published: 20/10/2021

If you're considering investing in landlord insurance, although it is not a legal requirement, we advise our clients to consider it seriously.

Below are some of the things you need to know about landlord insurance, including the different types of insurance available.

Landlord Insurance explained

Landlord insurance gives you protection against most risks associated with renting. It covers protection against damage to the property and your contents. However, there are additional policies you can take out to protect such things as missed rental payments or boiler breakdowns.

What Landlord Insurance Should You Get?

Many landlord insurance policies are available, and each one will cover you for different circumstances. The main cover includes:

  • Building insurance covers repairing structural damage in the event of fire, storm, flood, or other accident, fixtures, and fittings. 
  • Contents insurance covers damage or theft of furnishings, including carpets, curtains, and white goods. However, this doesn't include tenant's property which they should insure themselves.
  • Liability insurance covers the costs if your tenant, or you, are injured at the property.
  • Rent guarantee covers missed rent payments and legal fees, should you have to take the tenant to court.
  • Home emergency protects you in the event of an emergency, like a boiler breakdown, plumbing issue, security, or pest control.
  • Key care covers the cost of fitting new locks and supplying new keys to the property.
If you're unsure which type of cover to take out, you can get advice from your letting agent or check with your mortgage lender.

Things You Should Know About Landlord Insurance

Landlord insurance is different from regular home insurance. If you have home insurance but rent it out, your policy will automatically be void as basic home insurance won't cover you as a landlord.

Some Lenders Mandate It

It's not a legal requirement to have landlord insurance, but most mortgage lenders will make it mandatory before agreeing with you, and if you don't comply, you could be breaking the terms of your mortgage.

It's Tax-Deductible

As with most landlord expenses, you can often claim back on the costs of your landlord insurance. Make sure you keep payment records and notify your accountant about the expenses.

Bulk Discounts Apply

If you have multiple rental properties, you may be able to get a discount on your landlord insurance, as many providers will offer you a discount on a bulk policy.

Rent with Confidence

We are a central London Estate Agent so If you need help in understanding Landlord's insurance, please contact our SE1 lettings office, and we will be delighted to help you.  

Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered as financial or investment advice. Investing in real estate involves risks, and it is essential to conduct thorough research and seek professional guidance before making any investment decisions.

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