Taking landlord insurance advice

Posted: 2nd Jun 2014

When you think about all the things that can happen to your buy to let property, getting landlord insurance advice may help put your mind at rest that you have done all that you can to keep your investment safe.

Yes, of course, you are entrusting your property and its contents into the hands of a third party but tenants may not be the only nor, perhaps even the major, risk that your property may face.

There are perhaps three main situations where landlord insurance advice may be useful to help you to understand those risks:

  • your property may suffer damage;
  • the contents of your property may be damaged or stolen;
  • your property could be the cause of someone being injured or having their property damaged in some way.

Protecting your bricks and mortar

Landlords buildings insurance for your buy to let property can provide you with protection against the financial impact of having to carry out repairs right through to the complete rebuild of your property. Getting the right level of cover in place may be critical.

Buildings insurance typically may cover you against damage from things like:

  • fire and smoke;
  • storms and flooding;
  • earthquakes;
  • vandalism;
  • subsidence (not always provided as standard by all insurers but is provided as standard by us).

If your tenants have to move out because of damage caused, then you may find that your landlords buildings cover may compensate you for loss of some of your rental income while repairs are being carried out.

Protecting your contents

If you rent out your property on a furnished basis then this could represent a few thousand pounds worth of your property (the contents) in someone else’s care. You may wish to protect those belongings with contents insurance so that if items have to be replaced then you have some financial help.

Landlords contents insurance is typically available on:

  • a new for old replacement basis, where the insurance cover will provide funding for a new item;
  • on a market value basis, where your insurance will only cover the current second hand value of the item concerned.

Which is suitable for you will depend on the condition and value of your contents and landlord insurance advice may help you find the right solution for you.

Protecting your bank balance

If someone is injured as a result of your property for example by a falling slate or a loose floorboard, then they may decide to sue you for damages. Court awards in these situations may be substantial and even if you win, you may still be faced with the prospect of paying for your legal defence.

Public liability insurance may often be provided as part of a landlords buildings policy and may help protect you against such claims. Some policies may also meet those legal costs.

Specialist buy to let insurance providers such as ourselves will only be too happy to share our knowledge with you and give you some landlord insurance advice. This may help you to rest that bit more easily at night.