No, you do not need landlord insurance by UK law, but if you employ people, you do.
The answer to that my friend is no but you do need insurance if you employ people within your letting business. This article will address what you need to know in detail.
Here we go...
So you know that you don't need insurance by law because it's up to the landlord if he/she wishes to take a policy on their property. You may want to invest in buildings and contents insurance.
You might be thinking: Do you need landlord buildings insurance by law?
That's also a no here but it is advised you do take a policy out to cover things such as fire and subsidence damages over time. Subsidence could cost you a fortune if you have to pay for it yourself because there are extra costs to pay builders to demolish the property first, then rebuild it.
With a buildings insurance policy, your covered for that.
Now let's talk about contents insurance.
So do you need landlord contents insurance by law?
And again, you don't but if you rent to DSS tenants or any type of tenant really, you may want to cover your content (if you own the contents) to pay for items that have been stolen or damaged.
I mentioned this at the start of this article that you do need employers liability insurance and public liability insurance if you deal with the public.
So if you're a busy landlord you might want to talk to an insurance expert for that. It's always good to be covered because like everything in life, you just never know what's around the corner.
The law requires you to have an annual gas safety certificate in place to cover your tenant against carbon monoxide poisoning. So make sure that you have carbon monoxide detectors installed.
You must do this, even the biggest landlord in the country (the council) does this. If you don;t have this and something goes wrong and it's your fault, you could go to jail.
The cost of this is around £50 to £100 every year and to cover the costs you can add it on to the rent that's paid by you tenant.
You may want to include garden maintenance and window cleaning into your rent or you could ask the tenant to do this. If you rent a high rise flat, then that's a different story.
Always, always... ask your lawyer before you attempt renting to the public because the laws might be different in the areas where you live. In the UK, these laws are very strict and the courts treat it very seriously and some landlords even go to jail in some cases.
So basically the answer to your question: Do you have to have landlord insurance by law?
Is a yes and no, depending on the size of your letting business.
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