Whether you are a “professional” landlord, making your buy to let property or properties the mainstay of your livelihood, or an “accidental” landlord who unexpectedly finds themselves with a property to let, you almost certainly need landlord insurance.
With changing regulations, rising repair costs and increasing expectations from mortgage lenders and tenants alike, many landlords are now reviewing their insurance arrangements more carefully than ever before.
Choosing suitable cover is not simply about comparing prices online. It is also about understanding the risks associated with your property, the type of tenants you have and whether your policy reflects your circumstances accurately.
So, how do you find the most suitable product?
Consult a specialist landlord insurance broker
With our many years expertise and experience here at Cover4LetProperty, of course we are bound to say that, however …
- our essential mission is also echoed by the British Insurance Brokers’ Association (BIBA), which says that the purpose of an independent insurance broker is to help customers find appropriate cover at what they consider is a competitive price;
- there may be other ways of trying to find suitable landlord insurance through your own research, but an independent landlord insurance broker may be best placed to identify your specific needs as a landlord;
- a specialist broker may also be able to explain differences between policies, exclusions, excesses and optional extras in clearer, simpler language;
- it is the broker who is then able to match these needs to a wide range of products available – all the while searching for cover and pricing they believe may offer good value for money;
- different insurers may assess risks differently depending on the age of the property, construction type, tenant profile, claims history or whether the property is occupied or temporarily unoccupied;
- specialist landlord insurance may also be suitable for more complex circumstances, such as Houses in Multiple Occupation (HMOs), mixed-use properties, holiday lets or multi-property portfolios.
Landlord insurance online
Not only do we do the searching and matching of your needs to insurance products on your behalf, but we have also streamlined our processes to make them as simple and straightforward as possible:
- this often involves the use of online systems, enabling landlords to make enquiries, request quotations, submit applications and receive policy documents electronically;
- although online processes can be convenient, it is still important to check that the information provided is accurate and complete, as incorrect information could affect a future claim;
- if you prefer to speak to someone directly, many specialist brokers, including ourselves, continue to offer telephone support and guidance throughout the quotation process;
- purchasing landlord insurance online has probably never been more accessible, helping many landlords compare options and manage their policies more efficiently;
- throughout the process, brokers may contact you directly if clarification is required regarding the property, tenancy arrangements or previous insurance history.
Securing suitable landlord insurance online
Once you have decided that obtaining landlord insurance online may be the way to go, you might want to consider just what the cover is likely to include. Please remember that not all landlord insurance policies will offer the same features, benefits or limits of cover, so it is important to check the individual policy wording carefully.
What does landlord insurance cover?
Typical landlord insurance policies may include protection against loss or damage to the building itself caused by insured risks such as fire, flood, storm damage, escape of water, theft, vandalism or (often optional) accidental damage. Some insurers may also offer cover for outbuildings, garages, gates, fences or communal areas, depending on the policy selected.
If the property is furnished, landlords may also wish to consider contents cover for items they own within the property. This could include carpets, curtains, white goods or furniture supplied to tenants. Some policies may also include malicious damage by tenants, although terms, conditions and exclusions are likely to apply.
Landlord liability insurance is another important consideration. This may provide protection if a tenant, visitor or member of the public claims they have suffered injury or property damage connected to the let property. Cover limits and exclusions vary between insurers, so landlords should review the details carefully.
Many landlords also consider cover for loss of rental income. This may apply if the property becomes temporarily uninhabitable following an insured event and tenants are unable to remain in occupation. Alternative accommodation cover for tenants may also be included under some policies.
Additional, standalone supporting cover may be worth consideration, such as Residential let legal expenses and Optional rent protection. Rent guarantee insurance is designed to help landlords protect their rental income if tenants fall into arrears or stop paying rent altogether. Typically arranged alongside legal expenses cover, this type of policy may provide financial support for lost rental income while also helping with certain legal costs associated with recovering possession of the property or pursuing unpaid rent through the courts. Eligibility criteria for rent guarantee insurance often apply, including satisfactory tenant referencing and compliance with tenancy agreements and legal obligations. Policies and limits vary between insurers, so landlords should always check the policy wording carefully to understand exactly what is and is not included.
Meeting legal and regulatory requirements
In addition to arranging suitable cover, landlords should also ensure they continue to meet legal and regulatory obligations relating to their property. This may include gas safety requirements, electrical safety inspections, smoke alarms, tenancy deposit protection and maintaining the property in a safe condition. Insurance alone does not remove a landlord’s legal responsibilities.
Further reading: Landlords Guide to Health & Safety and Landlord Legislation Guide.
Mortgage lender requirements and lease agreements
Mortgage lenders or lease agreements may also require landlords to maintain appropriate buildings insurance at all times. If the property becomes unoccupied for a prolonged period, landlords should notify their insurer, as certain restrictions or conditions may apply during periods of vacancy. Unoccupied property insurance may typically be required.
Finding and arranging landlord insurance online or over the ‘phone through a specialist provider with expertise and experience in matching landlords to suitable products may prove one of the simplest and most straightforward ways of obtaining cover that reflects your circumstances and requirements.
Disclaimer
This article is intended as general information only and does not constitute financial advice or a recommendation to purchase any particular insurance product. Insurance cover, terms, conditions, exclusions and premiums vary between providers and individual circumstances. Always check policy documentation carefully and seek professional advice where appropriate.
