How to find suitable landlords insurance and other FAQs

Posted: 4th Jun 2014

Here are answers to some commonly asked questions that encounter.

 

What are landlord insurance brokers?

 

We are an example of a broker of this type.

The role of a broker is to be a centre of excellence in terms of knowledge of the marketplace and as a result, to be able to match a set of requirements to suitable insurance options.

Putting it practically, we may know, for example, that a given insurance company offers automatic cover for subsidence – something that is no longer universal. The broker’s job is to bring that (and other things like it) to the attention of a potential policyholder in order to provide them with informed choices.

Why is landlord insurance required?

As a professional landlord, the risks you and your property face are simply different, in part, to those of a standard owner-occupier.

That is why a typical owner-occupier buildings and contents policy will not cover a property that is being let out either totally or even in part (e.g. a room or two in your own home).

What types of cover are available?

That is why a typical owner-occupier buildings and contents policy will not cover a property that is being let out either totally or even in part (e.g. a room or two in your own home).

In practice, there may be a number of variations and additional cover elements provided (such as loss of rental income cover) – and it is typically a broker’s responsibility to help you understand what those additional areas are and how they might benefit you.

Must I take out this type of cover?

There may be no legal requirement as such but it might be very unwise to leave your property and contents uninsured.

Note also that if you have a buy to let mortgage, the conditions of the loan may require that you have appropriate cover in place for the building.

What if my property is standing empty while being converted?

Whether your property is empty or occupied, it might still be at risk from things such as natural disasters. Of course, if your property is unoccupied and unfurnished, you may not require contents cover.

It’s worth noting that if your property (furnished or not) stands unoccupied for more than 30 consecutive days (or 45 days with some providers), it may require unoccupied property insurance if you wish cover to be maintained.

Does the insurance cover my tenants?

That depends upon the nature of the problem.

If your tenants suffer injury or damage to their property that they believe to be attributable to your property, they may sue you for damages. If a court holds you liable then damages awarded to them typically may be covered by your third party liability protection as part of your landlord policy.

If you are not held liable then they could not make claims against your insurance.

For example, if they are injured due to their own negligence or misfortune, your landlord policy will typically not provide them with the equivalent of personal accident cover.