Landlord’s Insurance for Beginners
Landlord’s insurance or let property insurance, is something a landlord should begin to think about when purchasing a property with the intention to let it. If you fail to purchase landlord’s insurance, you are putting yourself at unnecessary risk’s, which could result in disastrous repercussions.
In certain circumstances it may be difficult or expensive to put landlord&rsquols insurance in place. This could be due to indefinite rebuild costs, resulting in inflated premiums; which can severely decrease your profitability as a landlord.
Many landlord’s will mistakenly be under the impression that their standard household insurance still covers the property if rented out and they do not require landlord’s insurance, which is very often not the case and landlord’s insurance is necessary. Most household policies will not cover your buildings, contents and vital property owner’s liability, which is covered in all of our landlord’s insurance policies. For these reasons it is crucial that you invest in landlord’s insurance on a property you are looking to let out.
With Cover4 Let Property’s landlord insurance cover; there are two options available for the buildings and contents. The first being landlord’s insurance standard buildings cover for a rented property, which you can find the details of at www.cover4letproperty.co.uk once you have entered the required details for a landlord’s insurance quotation.
The other if required, can be added on to the standard landlord’s insurance policy and covers accidental damage to the buildings. This is an option you are able to add on to the standard landlord’s insurance cover. This addition to the landlord’s insurance, covers for any accidental damage caused to the building by the tenant. The landlord’s insurance accidental damage cover will generally come at an extra cost and we are unable to offer accidental damage to contents in any of our landlord insurance policies.
Property owner’s liability comes as standard with all of our landlord insurance policies. This would cover you for example, when a tenant may hold you liable for an injury which was caused within/by your property.
Our landlord insurance policies will mostly come with two excesses you must pay when making a claim. Commonly it will be a £100 or £250 general excess, which would apply to all claims except for subsidence; which is likely to have a £1000 excess. The excess is an amount you would have to pay regardless of settlement value.
When purchasing landlord insurance you will need to insure it for the reinstatement or rebuild value. The most accurate way of doing this is to have to have a structural survey undertaken. The rebuild or reinstatement value for landlord insurance should take into account the following aspects:–
- Clearing the site
- Surveyor costs
- Architect costs
- Complying with government and local authority requirements
- Miscellaneous fees
All of our landlord insurance policies are index-linked each year on the information from the Association of British Insurers (ABI). The Financial Service Authority (FSA) regulates all of the British Insurers and requires insurers to provide key facts or a policy summary for any insurance policy available. All of our landlord’s insurance policies have individual key facts and policy wordings for each insurer. These are available at request and our landlord insurance team Cover4 Let Property is happy to deal with any queries you may have.
