Landlord insurance cover and other FAQs

Posted: 3rd Jun 2014

Here are a few responses to commonly asked questions such as what does landlord insurance cover?

What does landlord insurance cover offer by way of protection?

Of course, that depends upon an individual policy and the only way to be sure is to read the policy detail carefully.

However, typically a policy may provide cover in three areas:

  • for the structure of your property itself (typically called buildings insurance);
  • for any contents you may have in it (landlords contents insurance);
  • against the risks of you being sued by someone who has suffered injury or property damage as a result of your property (third party liability cover).

Do these areas include all-risks cover?

That is unlikely to be the case.

Typically all let property insurance policies will contain conditions and exclusions that exist as much for your protection as to limit the insurance liabilities.

For example, some policies may exclude cover for electronic items that are included in your furnishings as part of the rental deal. There may be no alternative but to read and compare the policy details to be clear.

What does landlord insurance cover in terms of problems with tenants?

Some policies may provide relatively little apart from liability insurance for landlords – and even there the nature of the cover may vary.

Some policies may provide you with protection against malicious damage caused by tenants.

You may also find that some may include what’s called loss of rental income cover providing a level of compensation should your tenants be forced to move out due to an insured risk making your property uninhabitable.

Note that insurance typically won’t cover situations such as:

  • where you are in rental dispute with your tenants;
  • they have fled leaving large unpaid arrears;
  • where you are taking legal action to try and enforce an eviction.

What does unoccupied property insurance mean?

Typically, insurance companies see a significant difference, in terms of risk, when properties are unoccupied. Burglaries and vandalism may be more common and there is further risk arising from problems (e.g. leaks) going unnoticed and creating major cumulative damage.

For that reason, policies typically won’t provide cover for properties that stand unoccupied for more than 30 consecutive days – and that may also typically apply to owner-occupier as well as landlord properties.

To protect your interests in such situations (e.g. if you have a property under probate) it may be advisable to take out unoccupied property insurance.

What about other questions?

If you have further questions of the type relating to what does landlord insurance cover, we will be only too happy to offer our assistance.