There are many pressures and challenges faced by the buy to let landlord these days – and there are inevitably occasions when things can go horribly wrong. That’s when you will turn to your landlord insurance policy for support and financial assistance.
Let’s see how you can get the broadest possible cover at times like these by taking a look at those elements that might be included as standard items for your particular landlord insurance policy or which may be available as extras or add-ons:
Loss of rental income
- your buy to let property is a business investment that relies on the steady income stream rents you receive;
- following an insured incident that leaves the property uninhabitable – and therefore unlettable – until the necessary repairs or reinstatement have been done, many landlord insurance policies provide for compensation for that loss of rental income;
All tenants cover
- some insurers consider certain categories of tenant as too high a risk and decline cover if you are offering tenancies to these groups;
- specifically designated all-tenant cover, on the other hand, maintains the insurance safeguards you need – whether or not your tenants happen to be drawn from the unemployed, welfare beneficiaries, or others;
Landlord liability indemnity insurance
- landlord liability indemnity insurance is an element of cover so critical that practically any policy will include its provision;
- the cover indemnifies you against claims from your tenants, their visitors, neighbours, or even members of the public who may have been injured or had their property damaged through some contact with your let property;
- liability claims of this nature can involve substantial payments of compensation, so landlord liability indemnity insurance typically offers cover for a minimum of £2 million – and, often, a lot more;
- subsidence is probably one of the most serious perils to threaten any property – with remedial works invariably proving extremely expensive and sometimes requiring the demolition of the building;
- the insurance excess on subsidence claims can be high indeed – £1,000 or more – and many insurers simply fail to extend cover for such risks entirely;
- if you are in any doubt as to the structural integrity of your let property or its vulnerability to subsidence, therefore, you might want to ensure cover for this peril is included as standard;
- however carefully you vet your tenants and take up references before granting any tenancy, there is always the possibility that you are landed with irresponsible individuals;
- some landlord insurance policies, therefore, incorporate the risk of malicious damage by your tenants or their visitors as a standard element of cover.
When you are purchasing your landlord insurance policy, there might be a natural temptation to get it over and done with as fast as possible so that you can continue with your normal daily business.
What we have hoped to illustrate is the importance of spending a little extra time scrutinising the policy, its terms and conditions, and just what is and what is not covered. You’ll be especially pleased to know, that all the elements of cover we have just mentioned come as standard with the policies we arrange (up to pre-agreed limits). So, you can be certain you have comprehensive protection for your investment property.