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Landlords Insurance: Frequently asked questions

Landlords Insurance: Frequently asked questions

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Your property is a significant asset, so it’s important to ensure your investment is protected by having adequate insurance in place. No matter how careful you are about background checks and risk assessments, things can still go wrong. As an independent insurance broker, here are some of the most common questions we’re asked about insurance for rental properties, along with the covers available to provide you with peace of mind.

Why do I need Landlord Insurance?

Landlord insurance is a specific type of insurance, created to protect landlords from the risks associated with renting a property. A standard home insurance policy – buildings insurance, contents insurance, or a combination of the two – will most likely not cover tenanted properties, leaving you uninsured (and potentially breaking the terms of your mortgage) if you need to make a claim.

As a Landlord, is it a legal requirement to have Landlords insurance?

There is no legal requirement to have a specific landlord insurance policy, however, failing to have one in place will likely break the terms of your mortgage, in addition to invalidating your contents and building insurance. The first step when looking for landlord insurance would be to talk to your mortgage or loan provider to check what their stipulations are regarding renting the property.

“Extremely happy with the service I was provided, Pietro was very well spoken and was happy to answer all my queries and made sure I got the best deals possible, I would highly recommend his services to anyone I know who is looking for a quote.”
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Why is it so important to get your ‘sums insured’ right?

The main reason for getting your sums insured right is because of the possibility of underinsurance. As a freehold property owner, your sum insured should reflect the cost to totally rebuild your property and this would include not just materials but professional fees too such as architects and surveyors. Most insurance policies will have an underinsurance clause called ‘average’. What this means is that if you make a claim and your sums insured are too low, the amount you are paid can be proportionally reduced. Our advisors can advise you on how to ensure these levels are adequate and in addition put you in touch with professional valuers.

Does it matter who I rent my property to?

People let properties to all different types of people including professionals, students or council house tenants. Specialist insurers cover different types of tenant and it’s important to disclose this when obtaining a quotation.

Do I need Landlords Insurance if I am renting to my family?

Strictly speaking; Landlord insurance is required if you are renting to a member of your family. You are classed as a landlord when you receive rent payments for your property, even if the rental agreement is informal, so landlord insurance is required. Some Insurers we have on our panel can adapt a standard home policy when renting to family members, so if this is something you do, its worth speaking to us so we can find the best solution for you.

What is covered by Landlords Insurance?

A typical landlord insurance policy will cover building and contents – as a standard home insurance policy would – with additional landlord specific benefits. Your policy will be tailored to meet your needs, and can include extended covers such as included as property owners liability, accidental damage cover, loss of rental income cover, trace and access cover, legal expenses, home emergency and boiler cover, terrorism, unoccupied property cover and alternative accommodation cover.

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Am I covered if I rent out a fully furnished property?

If you’re renting out a furnished residential property, it’s worth considering contents insurance as this can protect everything from your furniture to the TV you provide to your tenants.

Do I need employer’s liability cover as a Landlord?

There are many additional policies available to protect Landlords such as employer’s liability cover – covering any cleaners or other staff. who may get injured in your property.

Could you afford to lose your rent or can you afford to re-house tenants?

When renting out a property it’s worth considering cover for loss of rent, alternative accommodation, rent guarantee, contents and your own liability. Please talk to one of our specialists to discuss insurance covers available.

The most important factor is that you have adequate cover.

Alexander Swan have many years of experience helping Landlords to find the right insurance for their individual needs. Whether you let one property or multiple properties. Please talk to one of our experienced advisers to discuss insurance cover.