What Does a Landlord Insurance Policy Cover?
This article will explain what a landlord insurance policy will protect you for during everyday life of being a landlord and owning properties.
- It’s essential you understand what's covered and what's not covered, because running a business knowing that if anything happens, your insurance company could reject your claim.
- And just because you weren’t covered for a particular type of damage, like damage caused by fire, lightning, or if you live in a high-risk flood area.
So, "What Does a Landlord Insurance Policy Cover?"
- Insurance companies are fully regulated these days by the financial conduct authority, insurance companies must be clear as day when you take out a policy and during the lifetime of the policy.
- If you don’t care about the contents inside your owned property, then you can avoid taking on a contents insurance policy, either because your tenant brings their own, owned furniture or you have spent just say £500 on second-hand furniture to make the place livable.
- That being said, a contents insurance policy for landlords can be very beneficial if your contents are worth insuring.
Let’s get into contents insurance
The cost of contents insurance cannot be determined at this stage because there are a wide variety of risks involved, mainly the cost of your property contents and how much it costs to replace your fixtures and fittings.
- It is known widely that some landlords pay around £70 to £80 a year for a contents insurance policy, but please don’t take our word for that because insurance rates change every single hour here in the UK.
- So this policy basically protection sure for what it says on the box, your contents owned by you and not the tenant because the tenant actually needs another policy for his/her own personal belongings.
Now buildings insurance, which most landlords opt for if they are a buy to let landlord because mortgage companies insist on it.
What does landlord buildings insurance cover?
Just like contents insurance, a landlord buildings insurance policy will protect you from the elements of mother nature and damaged caused by outside contractors ( if it’s their fault) and any structural damage caused by fire and flooding.
- You will also be protected for subsidence if over the years you can see a slanting or sloping effect being caused by the ground underneath, which is very expensive to replace and may need a total rebuild and new foundations laid.
- If you have a buildings insurance policy, you will be primarily covered for every single eventuality, that’s out of your control.
- If one of your properties goes on fire and wasn’t caused by you as a landlord, ( because this will be looked into) the policy will pay out in full.
- And if you stay in a high-risk flood area and your property becomes permanently uninhabitable, the policy will allow you to pay for hotel expenses or another rentable property within the budget of your policy if there is one.
Every single kind of insurance has some sort of excess, even a fully comprehensive policy, whether you insure a car home or motorbike, you’ll always have to pay in excess.
- If you claim for damage to a newly fitted kitchen and the repair bill is just say £1800, then you might be asked to pay 20% of that amount, which is still not bad compared to the full cost.
- Just like any other insurance, it is unwise to claim your policy for things that you can put right for a small amount of money, labour, or time.
- There is no way to get around not paying in excess, not unless you find a company that doesn’t work on an excess basis, which is very highly unlikely.
What must you consider?
Before talking to a landlord insurance company, you, yourself should know what you need and what sort of protection you are thinking about, this makes all the difference.
From there the insurance company can address your problems with a solution, i.e. a policy to cover what you may need to claim for sometime in the future.
- Like I have mentioned just above you, ask about the excesses, ( how much to pay to start a claim)Just, so you have an overall figure of what you’re expected to pay if you ever make a claim.
- You also must be aware that every single policy is tailored to a particular landlord and this type of insurance is not like a regular home insurance policy, far from it, it has its own set of laws and regulations.
- But you don’t need to worry about ifs and buts and what about this because you’re practically covered these days as insurance companies are going online, because that’s the future, but you can still get a hold of them over the phone.
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