What can I cover with landlord insurance?

Posted: 22nd May 2015

Landlord insurance provides important safeguards to the owner of buy to let property. How do these work and what exactly can you buy with landlord insurance?

The building 

  • first and foremost, with the most appropriate kind of landlord insurance you can buy protection for the very structure and fabric of the building or buildings in which you have invested;
  • whether you are the landlord of buy to let residential property or the owner of commercial properties such as shops, warehousing, offices or industrial units, all are vulnerable to such potential disasters as fire, flooding, impacts, storm damage or vandalism;
  • insurance buys you protection against such loss or damage, so you might want to make sure that you arrange it through a specialist provider – such as those of us at Cover4LetProperty – to get the protection most appropriate for your particular needs and circumstances;
  • one of the critical details it is important to get right, for example, is the total sum insured – and amount designed to ensure that the settlement of any claim for the total loss of the building is enough to rebuild it;

The contents

  • whether you have let the premises fully furnished, part furnished or with just a minimum of carpets, curtains and fittings, landlord insurance is able to buy you protection against those items you own;
  • you might want to extend the cover to accidental damage and you may also want to investigate whether malicious damage by your tenants is included in the risks covered by your building and contents insurance;

The liabilities

  • with your insurance as a landlord, you are also able to gain valuable protection against the risk of a tenant – or indeed, one of their visitors, or even a member of the public – from suing you for negligence;
  • there are some responsibilities you have as a landlord which are a matter of health and safety legislation or local bylaws – some of these are identified on the main government website;
  • in addition to these, however, you have a common law duty of care as the landlord and property owner;
  • if you are held responsible for any personal injury or loss or damage to the property of your tenants, members of the public or visitors to your premises, you might face a potentially huge claim in compensation – landlord insurance typically buys you indemnity against such claims;
  • the seriousness of the possible threat facing a landlord in this regard is illustrated by the fact that insurance typically offers protection of up to at least £1 million and it is not uncommon for that limit to be raised to £2 million or more;

The rent

  • as a landlord, the success of your business relies upon the rent you receive – indeed, if you are depending on rental income to help make the regular mortgage repayments, rental income may be essential to your continued ownership of the let property;
  • yet if there is a major insured incident which leaves the premises so severely damaged that they cannot be occupied, you stand to lose the rental income – yet still have to make any mortgage repayments;
  • for that reason, landlord insurance typically includes compensation for loss of rental income in these circumstances.

It may be clear, therefore, that when you are arranging landlord insurance, you are buying some important safeguards for your let property and the business you are running.

If you have any questions or queries relating to your landlord insurance, please feel free to contact us. We will be more than happy to clarify.