If you’re letting out a property you’ve a lot to think
about, you’ll probably be decorating, doing some DIY, making sure the property
adheres to safety standards and fulfils all regulations. You’ll be thinking
about contracts for your tenants, you’ll be trying to find the perfect tenants.
There’s an awful lot to think about, but the one thing you must not forget, is
to get Landlord Insurance. Even if you already have the property insured with a
standard home insurance policy, it isn’t sufficient when you have tenants in
the property. You won’t be covered, as the policy will be invalid.
There are some additions with landlord insurance that you
won’t find in a standard home insurance policy. The needs of a landlord are
quite different from those of a homeowner occupying their home, and the
Landlord Insurance policies reflect this.
Of course you’ll need Landlord
buildings insurance, to cover structural damage. This is similar to your
standard home buildings insurance, covering you for floods or fire etc. but you
may also have additional cover for malicious damage. If a tenant vandalises
your property on purpose then you can file a claim. Your buildings insurance
should also include permanent fixtures such as fitted kitchens, wardrobes and
bathrooms.
Landlord
contents insurance will cover you for any furniture you have in the
property, this may include carpets and curtains and white goods, but do check
your policy details careful to make sure all your items are covered. It is
however unlikely that your landlord insurance policy will cover your tenants
belongings. Check this and let your tenant know if they need to arrange their
own contents insurance for their possessions in the house.
Some landlord insurance policies will include Rent Guarantee
Insurance. This type of cover comes into play if a tenant perhaps refuses to
pay the rent, and may even cover you for your property being empty between
tenants. If you have a lot of outgoings on the property such as mortgage
repayments, this might be a useful addition for you.
Legal Cover and Liability Insurance can also be very useful.
You will be covered if a tenant is hurt, injured or becomes ill in your
property because you have failed to maintain something properly. This could be
a fall down stairs due to a rotten banister, or sickness caused by carbon
monoxide poisoning from a gas fire that hasn’t been properly checked. You would
also be covered for taking a tenant to court or having them evicted.