Protecting your income with let property insurance may be a bit easier than you may imagine.
That’s partly because there are some policies, which may compensate you for a loss of rent in certain circumstances.
Your property could be susceptible to damage from a variety of events known as perils.
Buildings insurance can provide financial protection from these perils which can typically include events such as:
- storms and flooding;
- fire and smoke damage;
- lightning and earthquakes;
- damage from subsidence (may be included as standard on some policies, such as ours, but not all).
Any of these events could result in damage that renders your property uninhabitable until repairs have been carried out. Your tenants may have to move out and that could obviously result in a loss of rental income for you.
There are some buy to let insurance policies, such as ours, which could compensate you for this loss but only if it was the result of an insured risk, and up to set limits.
So, for example, your tenants moving out and leaving rent arrears will typically not be covered.
Your property is not just vulnerable to being damaged from the natural events above. Accidents involving human intervention are also obviously very common and policies typically cover accidental damage as standard.
Hopefully less common, are tenants that maliciously cause damage. That can have a significant financial impact for any landlord.
You may find though that there are some let property insurance products (but by no means all), which do provide cover for this type of vandalism. We are pleased to say that we offer this cover as a standard part of our landlord insurance cover.
Public liability insurance, typically provided as part of property insurance for buildings, may be another important financial shield for any landlord.
A slate may fall off the roof of your property and cause damage to a neighbour’s property or worse still, cause bodily injury. The injured person could decide to sue you for damages. If a court decides in their favour then public liability insurance (assuming you have it) can cover both the court award and any legal expenses arising.
Let property insurance may not be mandatory for landlords. As a tool though to help protect your business and your investment, it may be invaluable.