Types of landlord insurance

Posted: 21st Aug 2015

If you have joined the ranks of an estimated two million and more buy to let landlords in the UK, your property is an investment – probably one of the most valuable investments you are likely to make. According to a report in the Guardian newspaper (April 2015), investment in buy to let property leaves speculation in shares, bonds or earnings from cash savings accounts severely in its wake.

It makes sense, therefore, to protect that investment with one of the wide range of products designed to provide the safeguards you need, according to the changing circumstances of your property holding.

It might be helpful, therefore, to look at some of the principal ways in which landlord insurance may continue to protect your property – all of which may be easily and confidently arranged through us here at Cover4LetProperty:

Landlord insurance

  • this is the bedrock of your defences as a landlord, of course;
  • typically, it provides cover for the structure and fabric of your let property, and if required, any contents which you own within the premises;
  • as with any property insurance, the worst case scenario need to be envisaged, so that the total building sum insured covers the estimated cost of completely reconstructing the premises as well as clearing the area;
  • but landlord insurance may also cover much more than the physical risks and perils to your let property;
  • your liabilities for the health, safety and well-being of your tenants, for instance, might be looked after thanks to the cover provided to indemnify you against claims of negligence in your duty of care as a landlord;
  • landlord insurance may also ensure that your anticipated rental income is just about maintained even after a major insured event has rendered your let property temporarily unfit for letting;

Commercial landlord insurance

  • with similar emphasis on safeguarding the structure and fabric of your let property, commercial landlord insurance also recognises the particular needs and requirements of those owning property that is let for business purposes;
  • whether the premises are let as a shop, a workshop, a salon, a bed and breakfast business, a pub, bar or restaurant, commercial landlord insurance is tailored to safeguard the particular business operations of the enterprise;
  • in addition to the security generally provided by landlord insurance, therefore, this specialist cover also focuses on the provision of compensation for business disruption in the event of an insured incident;

Portfolio insurance

  • just as the name suggests, it is possible to arrange insurance not only for a single let property but for a whole portfolio of such premises – earning yourself as the landlord attractive discounts on the cost of insuring premises on a case by case basis;
  • portfolio insurance has the added advantage of keeping all of your buy to let properties under a single insurance policy, with just one annual renewal date to manage;

Unoccupied property insurance

  • with the best will and the greatest care in the world, you are unlikely to avoid vacancies in tenancies – whether through incoming and outgoing tenants or your decision to refurbish the premises themselves;
  • in either event, there is every possibility of your let property lying empty for more than a few months;
  • given the particular risks and perils to which an empty property may be exposed – whether through unattended maintenance problems or the unwanted attentions of burglars and vandals – purpose designed empty property insurance is necessary to maintain the level of cover and security demanded by the typical landlord;

Renovation insurance

  • you might have bought it with the express intention of refurbishment or decided to revamp a property you already own, but there is likely to be a place for landlord’s renovation insurance in your plans;
  • renovation insurance may be the key to ensuring the protection not only of the existing structure and fabric of the property you own, but also the works in progress and the final extension, reconfiguration or remodelling itself;
  • all the while, your property owner’s liabilities may also be safely protected with indemnities likely to start at a minimum of £1 million;
  • during the course of any renovation building works you are also likely to want cover for the plant, machinery, tools and materials employed in the project.

As may be clear, therefore, owning your buy to let property might not just call for a basic, all-purpose landlord insurance policy, but one that is specially tailored to meet the diverse and changing needs and circumstances of the typical landlord.

Ensuring that you are prepared to meet some or all of these changing demands, you might want to consider the expertise and experience that a specialist insurance provider such as ourselves may bring.