Being a responsible landlord: getting business contents insurance

Posted: 2nd Jun 2014

Do you need business contents insurance? Well, as a landlord, if you were to sit down and value any contents in your buy to let property (or properties), you may be surprised at how much they may be worth. Given that being a landlord is a business and that the contents of your rental property are business assets, business contents insurance – ie landlords contents insurance – may be worth thinking about.

Do you really need contents cover?

In case you were wondering about whether you needed business contents insurance, you may want to consider how you would fund the task of replacing the items that you have left at the property if they were destroyed or damaged in a disaster that may typically be insurable, like a fire, for example.

Some landlords provide white goods, and most provide ovens for their tenants to use. If you regularly let rooms to students you may find that you provide beds, desks and wardrobes too.

Would you be able to replace the items from your own pocket, or would you instead have to take out an enormous loan? Would you even be able to get a loan, or would you have to go cap in hand to friends, family or other people?

Rather than “do you really need it?” the question you may like to ask is “what would you do without it?”

The details

If you take a moment to look at the details of a number of business contents insurance policies, you may find that they are all slightly different. However, they may typically cover similar risks, such as:

  • theft;
  • fire;
  • storm damage;
  • earthquake; and
  • civil commotion.

The terms, conditions, exclusions and limitations may also be worth a look to determine whether you would have to change any of your current practices (eg. security provisions) to meet the insurer’s expectations.

However, aside from the risks that are covered, you may also want to bear in mind the price of the cover, and the kind of service the provider may offer. For example, you may wish to bear in mind what hours the client help lines are open, and how easy or difficult it is to get through to a real person.

Given that no two property rental businesses are the same, you may wish to make sure that the business contents insurance you have selected meets your individual needs. Accordingly, a specialist website with telephone backup such as ourselves may be a good place to start looking for the right policy for the contents of your rental property.