You may typically be able to think of landlord insurances as falling in to two broad categories:
- insurance cover for the building, which may typically include public liability insurance;
- cover for your contents.
For anyone running a business, taking care of the tools of your trade may be your number one priority. If you lose these or they are damaged, you may not be able to work and if you cannot work, you cannot earn income.
In much the same way, the building that you rent out is how you earn your income. If it cannot be rented out because it has been damaged, for example, then until you can make repairs your income stream may stop.
Buildings cover, as part of you landlord insurances, can provide financial backup that can help keep any interruption to your income generation as short as possible.
Landlord buildings cover
Your buy to let property can suffer damage from a number of events that may typically be covered by buildings insurance. This typically includes damage from fire, flooding, storms, lightning and earthquakes.
Some but not all, buildings insurance policies may also cover subsidence as standard. (You’ll be pleased to know that we provide subsidence cover as standard with our let property insurance).
It is important that the level of cover for any buildings insurance is high enough to provide for the complete rebuild of your buy to let property if the damage is such that this is required.
You may also typically find that there are some landlords buildings insurance policies which may cover loss of rent if your tenants have to move out of your building while damage resulting from an insured event is being repaired.
As a landlord, you may typically find that you are responsible if anyone is injured or has their property damaged, as a result of your premises.
If a court finds that you were negligent in some way then the awards for damages against you could be very high. Buildings insurance typically includes public liability insurance cover, which can protect you financially in these situations and may typically also cover legal fees arising.
The extent to which you may need contents cover as part of landlord insurances will depend upon whether you rent your property as furnished or unfurnished. If your property is unfurnished then your fixtures and fittings will typically be covered under buildings insurance.
If your rental property is furnished or part furnished you may opt for contents cover. How much cover you need will depend on the nature and value of the contents. You may typically have two options:
- new for old replacement;
- market value replacement.
New for old tends to be more expensive than market value, for obvious reasons.
It is important when choosing both landlords buildings insurance and buy to let contents insurance not to underestimate the value of your investment and belongings. Not having enough landlord insurances if something does go wrong may leave you in the